Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment. $ (b) Find the amount that the Worthingtons borrowed from their bank. $ (c) Find the amount that the Worthingtons borrowed from the seller. $ (d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.) $ (e) Find the Worthingtons' monthly interest payment to the seller

Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment. $ (b) Find the amount that the Worthingtons borrowed from their bank. $ (c) Find the amount that the Worthingtons borrowed from the seller. $ (d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.) $ (e) Find the Worthingtons' monthly interest payment to the seller

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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