This topic contains a solution. Click here to go to the answer
« previous next »

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 212 times)

bb

  • Hero Member
  • *****
  • Posts: 544
on: Jul 10, 2018
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
Reply #1 on: Jul 10, 2018
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
:D TYSM

juliaf

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Primates use their space in a variety of ways: home ranges, core areas, and territories. Primates use their space in a variety of ways: home ranges, core areas, and territories.
The basalt below the hominins is dated to 1.8 million years ago, and the geomagnetic polarity of the The basalt below the hominins is dated to 1.8 million years ago, and the geomagnetic polarity of the
The cranium of early African H. erectus KNM-ER 3733 is nearly 1.8 million years old. The cranium of early African H. erectus KNM-ER 3733 is nearly 1.8 million years old.
All fuel injectors should make the same sound with the engine running at idle speed. A lack of sound ... All fuel injectors should make the same sound with the engine running at idle speed. A lack of sound ...
The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007). The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007).
Earth 200 Million Years Ago Earth 200 Million Years Ago
Video: Anaphylaxis Animation

For a complete list of videos, visit our video library