Question

Forums Calendar Gradebook MATSUBARA> Assessment ities and Loans You want to buy a $206,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest a) How much is the loan amount going to be? b) what will your monthly payments be if the interest rate is 6%? c) what will your monthly payments be if the interest rate is 7%? Get help: Video Points possible 1 Unlimited attempts Submit

Answer 1

	DOWNPAYMENT =	15% OF LOAN
		15% * 206000
		30900
a)	LOAN AMOUNT =	TOTAL COST - DOWNPAYMENT
		206000 - 30900
		175100
b)	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(6%/12)*175100
		1 - (1 / (1 + 6%/12)^360))
	P =	875.5
		0.833958072
	P =	1049.81
c)	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(7%/12)*175100
		1 - (1 / (1 + 7%/12)^360))
	P =	1021.416667
		0.876794146
	P =	1164.94