« 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 98 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?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Cuy being raised at home in the traditional Andean fashion Cuy being raised at home in the traditional Andean fashion
The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us The frontal sinus, an airfilled space just behind the brow, is a unique size and shape in each of us
The Canadian ballot is considerably simpler than the American ballot. Note there is nothing like a c The Canadian ballot is considerably simpler than the American ballot. Note there is nothing like a c
Two wells are filled with the same antigen, and when they diffuse to the antibody, they make a line ... Two wells are filled with the same antigen, and when they diffuse to the antibody, they make a line ...
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 ...
Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ... Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ...
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library