This topic contains a solution. Click here to go to the answer

Author Question: You just bought a home for 250,000 and are to make monthly payments of 1,834.41 for 30 years at 8 ... (Read 218 times)

bb

  • Hero Member
  • *****
  • Posts: 544
You just bought a home for 250,000 and are to make monthly payments of 1,834.41 for 30 years at 8 APR.
 
  Suppose you add 298.44 each month to the 1,834.41 house payment making your monthly payment 2,132.85. This extra amount is applied to the principal. How long will it take you to pay off your loan of 250,000? Use a calculator to determine your answer.
  A) It will take under 15 years.
  B) It will take about 16 years.
  C) It will take slightly over 19 years.
  D) It will take slightly over 20 years.

Question 2

Assume you just bought a new home and now have a mortgage on the home. The amount of the principal is 150,000, the loan is at 5 APR, and the monthly payments are spread out over 30 years.
 
  What is the loan payment? Use a calculator to determine your answer.
  A) 798.95
  B) 805.23
  C) 850.32
  D) 903.47



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

covalentbond

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

Answer: C
Explanation: C) With Mode of P/Y = 12 and C/Y = 12, I/Y = 8, PV = 250,000, PMT = -2,132.85, and FV = 0, we get n = 228.85 months or 19.07 years.

Answer to Question 2

Answer: B
Explanation: B) With Mode of P/Y = 12 and C/Y = 12, N = 360, I/Y = 5, PV = 150,000, and FV = 0, we get 805.23 as the monthly payment.




bb

  • Member
  • Posts: 544
Reply 2 on: Jul 10, 2018
Gracias!


TheDev123

  • Member
  • Posts: 332
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

For a complete list of videos, visit our video library