Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Question
Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at
6
%
| 3 |
| 8 |
for thirty years. (Round your answers to the nearest cent.)
(a) Find her monthly payment.
$
(b) Find the total interest.
$
(c) Prepare an amortization schedule for the first two months of the loan.
(d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?
$ per month
$
(b) Find the total interest.
$
(c) Prepare an amortization schedule for the first two months of the loan.
| Payment Number |
Principal Portion |
Interest Portion |
Total Payment |
Balance |
|---|---|---|---|---|
| 0 | $ | |||
| 1 | $ | $ | $ | $ |
| 2 | $ | $ | $ | $ |
(d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?
$ per month
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