Question: You plan to purchase an $ 80,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.00

You plan to purchase an $ 80,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.00 percent. You will make a down payment of 20 percent of the purchase price.
a. Calculate your monthly payments on this mortgage.
b. Calculate the amount of interest and, separately, principal paid in the 127th payment.
c. Calculate the amount of interest and, separately, principal paid in the 159th payment.
d. Calculate the amount of interest paid over the life of this mortgage.

Step by Step Solution

★★★★★

3.24 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

You will make a down payment of 20 percent of the purchase price or y... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

403-B-B-F-M (1522).docx

120 KBs Word File

Students Have Also Explored These Related Banking Questions!

On February 1, 1983, Nugent Manufacturing, Inc. contracted with Costello Wholesalers to supply Costello with 1,000 integrated circuits. Delivery was called for on May 1, 1983. On March 15, 1983,...

You plan to purchase a $ 100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of...

You plan to purchase a $ 175,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 7.75 percent. You will make a down payment of 20 percent of the...

You plan to purchase a house for $270,000 using a 15-year mortgage obtained from your local bank. the mortgage rate offered to you in 5.00 percent. you will make a down payment of 20 percent of...

please show financial calculator work! You plan to purchase a house for $199,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase...

You plan to purchase a house for $145,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage...

You plan to purchase a house for $192,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 25 percent of the purchase price. You will not pay off the mortgage...

You plan to purchase a house for $255.000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage...

You plan to purchase a house for $163.000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage...

You plan to purchase a house for $183,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage...

Why does ATM use small, fixed-length cells?

Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan. 2 Inventory 100 units at ... $5 each 4 Sale 80 units at ....... $8 each 11 Purchase...

A client instructs a broker to submit a limit order to buy 1 0 , 0 0 0 shares of a stock at C 1 5 a share. This is best described as a ( n ) : A valldity instruction. B clearing instruction. c...

What percentage of projects are being completed on time? A. 19% B. 31% C. * 51% D. 71%

Calculate the following: (LG 15-6) a. If the simple loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 12.5 percent. and the ratio of commissions and other...

An insurance company's projected loss ratio is 77.5 percent, and its loss adjustment expense ratio is 12.9 percent. It esti- mates that commission payments and dividends to policy- holders will add...

An insurance company collected $3.6 million in premiums and disbursed $1.96 million in losses. Loss adjustment expenses amounted to 6.6 percent and dividends paid to pol- icyholders totaled 1.2...

pls help me two people have got it incorrect What It Means to Invest in Stocks? Common stock is considered to be one of the most popular investment vehicles for long - term wealth building. Investors...

Your grandparents have been putting $5000 into an account each year that earns a rate of 4%. If it has been 15 years, how much is it worth now? O $86,984.77 O $100,117.94 $125,014.35 O $75,210.36 If...

Alpha Inc has just issued a 15-year bond with $1,000 par value, which pays the amount below as annual coupon (interest). The market price of the bond and your required rate of return are also...