Question

Mr. Bill S.​ Preston, Esq., purchased a new house for ​$60, 000 He paid ​$10 000...

Mr. Bill S.​ Preston, Esq., purchased a new house for

​$60, 000

He paid

​$10 000

upfront and agreed to pay the rest over the next

1010

years in

1010

equal annual payments that include principal payments plus

1313

percent compound interest on the unpaid balance. What will these equal payments​ be?

a.  Mr. Bill S.​ Preston, Esq., purchased a new house for

​$60, 000

and paid

​$10 ,000 upfront.

How much does he need to borrow to purchase the​ house?

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Homework Answers

Answer #1

Solution:-

To Calculate equal payments​ be-

Equal Payment will be $9,214.48

A. To Calculate how much amount need to borrows to purchase this house-

Borrowed Amount = Purchased Amount - Upfront fee

Borrowed Amount = $60,000 - $10,000

Borrowed Amount = $50,000

If you have any query related to question then feel free to ask me in a comment.Thanks.

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