A young couple buying their first home borrow $90,000 for 30 years at 7.5%, compounded monthly, and make payments of $629.29. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment. a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. ANSWER: $84274.14 (b) How many regular payments of $629.29 will amortize the unpaid balance from part (a)? ANSWER: 291.14 payments c) How much will the remaining debt be after the number of full payment periods in part (b) is made and how much extra must be included with the last full payment to pay off the debt? d) How much will the couple PAY over the life of the loan by paying the extra $2,000? e) How much will the couple SAVE over the life of the loan by paying the extra $2,000?
I need help with parts C, D, and E, please!
A young couple buying their first home borrow $90,000 for 30 years at 7.5%, compounded monthly, and make payments of $629.29. After 4 years, they are able to make a one-time payment of $2,000 along with their 48th payment.
a) Find the unpaid balance immediately after they pay the extra $2,000 and their 48th payment. ANSWER: $84274.14
(b) How many regular payments of $629.29 will amortize the unpaid balance from part (a)? ANSWER: 291.14 payments
c) How much will the remaining debt be after the number of full payment periods in part (b) is made and how much extra must be included with the last full payment to pay off the debt?
d) How much will the couple PAY over the life of the loan by paying the extra $2,000?
e) How much will the couple SAVE over the life of the loan by paying the extra $2,000?
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