A house sells for $275,000 and a 4% down payment is made. A mortgage is secured at 4% for 15 years. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary. Use the formula below as needed. Part 1 of 4 (a) Find the down payment. The down payment is $ 11000 Part 2 of 4 M = P.-—- n -nt 1- (1 + =) ™" n (b) Find the amount of the mortgage. The amount of the mortgage is $ X O ← Ec BH E
A house sells for $275,000 and a 4% down payment is made. A mortgage is secured at 4% for 15 years. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary. Use the formula below as needed. Part 1 of 4 (a) Find the down payment. The down payment is $ 11000 Part 2 of 4 M = P.-—- n -nt 1- (1 + =) ™" n (b) Find the amount of the mortgage. The amount of the mortgage is $ X O ← Ec BH E
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
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![### Mortgage Calculation Example
A house sells for $275,000 and a 4% down payment is made. A mortgage is secured at 4% for 15 years. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary.
Use the formula below as needed:
\[ M = \frac{P \cdot \frac{r}{n}}{1 - \left(1 + \frac{r}{n}\right)^{-nt}} \]
#### Part 1 of 4
**(a) Find the down payment.**
The down payment is $11,000.
---
#### Part 2 of 4
**(b) Find the amount of the mortgage.**
The amount of the mortgage is $\_\_\_\_\_.
---
This example demonstrates how to calculate the necessary components to secure a mortgage when purchasing a home. Begin by determining the down payment, and then proceed to calculate the mortgage amount using the provided formula.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3e771c6-7981-48c3-92e5-4655d7f4f815%2F81d7d3f6-e2a7-4b36-9d87-8c018dabcbdd%2Fgg73cmk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Mortgage Calculation Example
A house sells for $275,000 and a 4% down payment is made. A mortgage is secured at 4% for 15 years. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary.
Use the formula below as needed:
\[ M = \frac{P \cdot \frac{r}{n}}{1 - \left(1 + \frac{r}{n}\right)^{-nt}} \]
#### Part 1 of 4
**(a) Find the down payment.**
The down payment is $11,000.
---
#### Part 2 of 4
**(b) Find the amount of the mortgage.**
The amount of the mortgage is $\_\_\_\_\_.
---
This example demonstrates how to calculate the necessary components to secure a mortgage when purchasing a home. Begin by determining the down payment, and then proceed to calculate the mortgage amount using the provided formula.
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