« previous next »

Author Question: You just bought a home for 250,000 and are scheduled to make monthly payments of 1,834.41 for 30 ... (Read 80 times)

penza

  • Hero Member
  • *****
  • Posts: 1,022
on: Jul 10, 2018
You just bought a home for 250,000 and are scheduled to make monthly payments of 1,834.41 for 30 years at 8 APR. Suppose you add 400 each month to the 1,834.41 house payment, making your monthly payment 2,234.41.
 
  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 about 206 months.
  B) It will take about 216 months.
  C) It will take about 15.5 years.
  D) It will take about 16.5 years.

Question 2

________ is an annuity with an infinite life making continual annual payments.
 
  A) Amortized loan
  B) Principal
  C) Perpetuity
  D) APR


SeanoH09

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: A
Explanation: A) With Mode of P/Y = 12 and C/Y = 12, I/Y = 8, PV = 250,000, PMT = -2,234.41, and FV = 0, we get n = 206.19 months or 17.18 years.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

An overall view of the four-cylinder engine that is due for a scheduled valve adjustment according ... An overall view of the four-cylinder engine that is due for a scheduled valve adjustment according ...
To use a battery charger, make sure the charger is connected to the battery before plugging in the ... To use a battery charger, make sure the charger is connected to the battery before plugging in the ...
A batter hits a home run in which the ball travels 110 m horizontally with no appreciable ... A batter hits a home run in which the ball travels 110 m horizontally with no appreciable ...
Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ... Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ...
Biology Forums Home Page (Feb. 2022) Biology Forums Home Page (Feb. 2022)
Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ... Sabrina's Fabric Land bought $5,000 of equipment at the beginning of 2015. Amortization ...
Video: SNP Polymorphysim Microarray Chip - How to Test a Person's DNA

For a complete list of videos, visit our video library