A woman buys an apartment house for $1,250,000 by making a down payment of $325,000 and amortizing the rest of the debt with semiannual payments over the next 11 years. The annual interest rate on the debt is 8%, compounded semiannually. Find the total interest paid over the life of the loan.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
House Price = $1250000
Down Payment = $325000
Loan amount, P = 1250000-325000 = 925000
Time Period, n = 11 years or 22 Semiannual
Rate, r = 0.08/2 = 0.04 per payment period.
Total Payment = semiannual payments * n = 64008.9 * 22 = $ 1408195.81
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