4. Jack and Jill have found a hill they would like to buy. They can buy the hill for $229 000. In talking with the bank, they have been offered a mortgage for 85% of the cost (meaning they need a 15% down payment) at 6.2% compounded monthly, with regular weekly payments for 15 years. PV:8 229,000-34,350 RATE: 6.2 PERIOD: 180 FV: Compounding: Monthy a) How much will the down payment be? (15% down 229,000 X0.15 PMT: y 34,350 b) How much will the principal of the mortgage be? 15.1.- down payment 851.- mortgage Period (15) (12) = 180 payment) $ 34,350
4. Jack and Jill have found a hill they would like to buy. They can buy the hill for $229 000. In talking with the bank, they have been offered a mortgage for 85% of the cost (meaning they need a 15% down payment) at 6.2% compounded monthly, with regular weekly payments for 15 years. PV:8 229,000-34,350 RATE: 6.2 PERIOD: 180 FV: Compounding: Monthy a) How much will the down payment be? (15% down 229,000 X0.15 PMT: y 34,350 b) How much will the principal of the mortgage be? 15.1.- down payment 851.- mortgage Period (15) (12) = 180 payment) $ 34,350
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:4. Jack and Jill have found a hill they would like to buy. They can buy the hill for $229 000. In talking with the bank,
they have been offered a mortgage for 85% of the cost (meaning they need a 15% down payment) at 6.2%
compounded monthly, with regular weekly payments for 15 years.
PV:8 229,000-34,350
RATE: 6.2
PERIOD: 80
FV:
Compounding: Monthy
a) How much will the down payment be? (15% down
229,000 x0.15
PMT:
= 34,350
b) How much will the principal of the mortgage be?
15%.- down payment
851. -
mortgage
Period (15) (12) = 180
payment)
$ 34,350
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