Question

**Tom Burke bought a home in Virginia for $214,000. He put
down 20% and obtained a mortgage for 25 years at 9%. What is Tom’s
monthly payment and the total interest cost of the
loan**

Answer #1

Down payment is = (214000*20%) |

Down payment is = $ 42,800/. |

Balance of home purchase cost to be in Monthly installments is $ 171,200/. |

Monthly payment can be found using Present value of annuity formula |

Present value of annuity is = P*(1-(1+r)^-n)/r |

"P" is Monthly Payment = ? |

"r" is Monthly interest rate = 9%/12 = 0.75% |

"n" is No of months = 25*12 = 300 |

Present value of annuity is = $ 171,200 |

171200=P*(1-(1+0.0075)^-300)/0.0075 |

171200=P*119.1616 |

P is = (171200/119.1616) |

P is = $ 1,436.70/. Approx. |

Tom's Monthly payment is $ 1,436.70/. |

Total interest on the loan is = Total of monthly payments - Loan amount balance after down payment |

Total interest on the loan is = ((1436.70*300)-171200) |

Total interest cost on the loan is = $ 259,810/. |

Joe Levi bought a home in Arlington, Texas, for $148,000. He put
down 30% and obtained a mortgage for 30 years at 5.00%. (Use Table
15.1.) a. What is Joe’s monthly payment? (Round your intermediate
values and final answer to the nearest cent.) b. What is the total
interest cost of the loan? (Use 360 days a year. Round your
intermediate values and final answer to the nearest cent.)

1. Joe Levi bought a new home in Arlington, Texas for $140,000.
He put down 20% and has two options. At bank A he can get a 30 year
mortgage at 5.5% and at bank B he can get a 30 year mortgage for
7.5%. He would save $ ________ in total interest by choosing bank
A. His monthly payment would be $ ______ lower by choosing bank
A.

2. Joe Levi bought a new home in Arlington, Texas for $140,000.
He put down 20% and has two options. At bank A he can get a 30 year
mortgage at 5.5% and at bank B he can get a 15 year mortgage for
5.5%. He would save $ _______ in total interest by choosing bank B.
His monthly payment would be $ ________ lower by choosing bank
A.

suppose that 10 years ago you bought a home for $140,000, paying
10% as a down payment, and financing the rest at 9% interest for 30
years.
a. how much money did you pay as your down payment?
b. how much money was your existing mortgage loan for?
c. what is your current monthly payment on your existing
mortgage?
d. how much total interest will you pay over the life of the
existing loan?

Tom buys a $240,000 home. He must make monthly mortgage
payments for 30 years, with the first payment to be made a month
from now. The annual effective rate of interest is 8%. After 15
years Tom doubles his monthly payment to pay the mortgage off more
quickly. Calculate the interest paid over the duration of the
loan.

A home is bought for $420,000 with a 20% down
payment. The interest rate is 3.2% and the term is 30
years (paid monthly). What is the monthly
payment?

Pablo bought a new Mercedes for $35,000. He put a down payment
of 10% and financed the rest for 4 years at an interest rate of
7.2%
1. What is his financed amount?
2. What is his monthly payment
3. He wants a $450 monthly car payment. Using the same loan
terms, what priced car can he annually afford?
Please show work. Thank you

Nancy Karnes bought a home for $143,000 with a down payment of
$15,000. Her rate of interest is 9% for 35 years. Calculate
her:
A. Monthly payment
B. First payment broken down into interest and principal
(Round your answers to the nearest cent.)
C. Balance of mortgage at end of month
A.
Monthly payment
B.
First payment:
interest
principal
C.
Balance of mortgage

You just bought a house for $500,000 and made a $119,418.84 down
payment. You obtained a 30-year loan for the remaining amount.
Payments were made monthly. The nominal annual interest rate
(compounded monthly) is 9%. What was his monthly loan payment?

1.A couple has just purchased a home for $307,000.00. They will
pay 20% down in cash, and finance the remaining balance. The
mortgage broker has gotten them a mortgage rate of 3.60% APR with
monthly compounding. The mortgage has a term of 30 years.
What is the monthly payment on the loan?
2. A couple has just purchased a home for $307,000.00. They will
pay 20% down in cash, and finance the remaining balance. The
mortgage broker has gotten them...

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