Fixed-Rate Mortgage Payments EXAMPLE Mortgage Rate Term in Years $134,000 6.75% 25 Step 1 Look in the table. The payment at 6.75% for 25 years is $6.91. Step 2 $ 6.91 Payment for $1,000 X 134 (Loan is $134,000) $925.94 Payment for $134,000 Step 3 12 Months x 25 Years 300 Months in 25 years Step 4 S X 925.94 Payment for 1 month Months 300 $277,782.00 Total payment Term Total Mortgage Rate in years Payment 6% 7% 6% 7% 7% 7.25% 7% 7.75% 7% 1. $235,000 2. $235,000 3. $84,000 4. $84,000 5. $150,000 6. $150,000 7. $202,000 8. $202,000 9. $856,000 10. $856,000 7% 11. $208,000 6% 12. $208,000 13. $157,000 30 30 30 30 25 25 25 25 Monthly Payment to Amortize (Repay) a Loan of $1,000 Term Rate 5.50% 25 30 30 30 30 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75% Directions Compute the total payment for each of these mortgage loans. 20 Yrs. 6.88 7.02 7.16 7.31 7.46 7.60 7.75 7.90 14. $146,000 15. $146,000 16. $136,000 17. $136,000 18. $365,000 19. $365,000 20. $185,000 21. $185,000 22. $1,140,000 23. $1,140,000 24. $142,000 6.75% 25. $142,000 5.50% 26. $155,000 American Guidance Service, Inc. Permission is granted to reproduce for classroom use only. 8.06 8.21 Chapter 4, Lesson 5 25 Yrs. 6.14 6.29 6.44 6.60 6.75 6.91 7.07 7.23 7.39 7.55 Mortgage Rate 6% 6% 7% 7% 6% 6% 6% 6% 6% 6% 5.5% 5.5% 6% 30 Yrs. 5.68 5.84 6.00 6,16 6.32 6.49 6.65 6.82 6.99 7.16 Total Term in years Payment 25 20 25 30 25 30 25 20 25 30 25 45 30 25 Consumer Mathematics
Fixed-Rate Mortgage Payments EXAMPLE Mortgage Rate Term in Years $134,000 6.75% 25 Step 1 Look in the table. The payment at 6.75% for 25 years is $6.91. Step 2 $ 6.91 Payment for $1,000 X 134 (Loan is $134,000) $925.94 Payment for $134,000 Step 3 12 Months x 25 Years 300 Months in 25 years Step 4 S X 925.94 Payment for 1 month Months 300 $277,782.00 Total payment Term Total Mortgage Rate in years Payment 6% 7% 6% 7% 7% 7.25% 7% 7.75% 7% 1. $235,000 2. $235,000 3. $84,000 4. $84,000 5. $150,000 6. $150,000 7. $202,000 8. $202,000 9. $856,000 10. $856,000 7% 11. $208,000 6% 12. $208,000 13. $157,000 30 30 30 30 25 25 25 25 Monthly Payment to Amortize (Repay) a Loan of $1,000 Term Rate 5.50% 25 30 30 30 30 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75% Directions Compute the total payment for each of these mortgage loans. 20 Yrs. 6.88 7.02 7.16 7.31 7.46 7.60 7.75 7.90 14. $146,000 15. $146,000 16. $136,000 17. $136,000 18. $365,000 19. $365,000 20. $185,000 21. $185,000 22. $1,140,000 23. $1,140,000 24. $142,000 6.75% 25. $142,000 5.50% 26. $155,000 American Guidance Service, Inc. Permission is granted to reproduce for classroom use only. 8.06 8.21 Chapter 4, Lesson 5 25 Yrs. 6.14 6.29 6.44 6.60 6.75 6.91 7.07 7.23 7.39 7.55 Mortgage Rate 6% 6% 7% 7% 6% 6% 6% 6% 6% 6% 5.5% 5.5% 6% 30 Yrs. 5.68 5.84 6.00 6,16 6.32 6.49 6.65 6.82 6.99 7.16 Total Term in years Payment 25 20 25 30 25 30 25 20 25 30 25 45 30 25 Consumer Mathematics
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.4: Mathematics Of Finance
Problem 16E
Related questions
Question
Transcribed Image Text:Name
Fixed-Rate Mortgage Payments
EXAMPLE Mortgage Rate
$134,000
6.75%
Term in Years
25
Step 1 Look in the table. The payment at
6.75% for 25 years is $6.91.
Step 2 $ 6.91
X 134
$925.94
Step 3 12 Months
X 25 Years
300 Months in 25 years
Payment for $1,000
(Loan is $134,000)
Payment for $134,000
Step 4 S
X
925.94
300
$277,782.00
1. $235,000
2. $235,000
Term
Total
Mortgage Rate in years Payment
6%
Payment for 1 month
Months
Total payment
7%
6%
Date
30
30
30
30
25
25
25
25
25
Directions Compute the total payment for each of these mortgage loans.
30
30
30
30
Rate
5.50%
5.75%
6.00%
6.25%
Monthly Payment to Amortize
(Repay) a Loan of $1,000
Term
6.50%
6.75%
Period
7.00%
7.25%
7.50%
7.75%
3. $84,000
4. $84,000
7%
5. $150,000
7%
6. $150,000
7. $202,000
7.25%
7%
7.75%
7%
8. $202,000
9. $856,000
10. $856,000
7%
11. $208,000
12. $208,000
6%
6.75%
5.50%
13. $157,000
American Guidance Service, Inc. Permission is granted to reproduce for classroom use only.
20 Yrs.
6.88
7.02
7.16
7.31
7.46
7.60
7.75
7.90
8.06
8.21
14. $146,000
15. $146,000
16. $136,000
17. $136,000
18. $365,000
19. $365,000
Activity
Chapter 4, Lesson 5
20. $185,000
21. $185,000
22. $1,140,000
23. $1,140,000
24. $142,000
25. $142,000
26. $155,000
25 Yrs.
6.14
6.29
6.44
6.60
6.75
6.91
7.07
7.23
7.39
7.55
Term
Mortgage Rate in years
25
6%
6%
7%
7%
6%
6%
6%
6%
6%
6%
5.5%
30 Yrs.
5.68
5.84
6.00
5.5%
6%
6.16
6.32
6.49
6.65
6.82
6.99
7.16
45
Total
Payment
20
25
30
25
30
25
20
25
30
25
30
25
Consumer Mathematics
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning