The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs. The Bainters want to know how much they would pay on their loan each year as well as how much they would
The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs. The Bainters want to know how much they would pay on their loan each year as well as how much they would
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs.
The Bainters want to know how much they would pay on their loan each year as well as how much they would pay on their loan after 5 years, 10 years, 15 years, and 30 years. They also want to determine how much they would pay in interest on their loan when they repay the entire loan.
What are the amounts?
Your answer should include (remember to show or explain your calculations)
- the total amount paid in loan payments after 1 year
- the total amount paid in loan payments after 5 years
- the total amount paid in loan payments after 10 years
- the total amount paid in loan payments after 15 years
- the total amount paid in loan payments after 30 years
- the total amount of interest paid on the loan when it is repaid
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