Suppose that you want to purchase a home for $195,000, with a 20-year mortgage at 7.5% interest. Suppose that you can put 20% down. (Use this table to calculate your answer. Round your answers to the nearest cent.) (a) What is the amount of the down payment? $ (b) What is the amount to be financed? $ (c) What are the monthly payments? $
Suppose that you want to purchase a home for $195,000, with a 20-year mortgage at 7.5% interest. Suppose that you can put 20% down. (Use this table to calculate your answer. Round your answers to the nearest cent.) (a) What is the amount of the down payment? $ (b) What is the amount to be financed? $ (c) What are the monthly payments? $
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 21E
Related questions
Question
![Suppose that you want to purchase a home for $195,000, with a 20-year mortgage at 7.5% interest. Suppose that you can put 20% down. (Use this table to calculate your answer. Round
your answers to the nearest cent.)
(a) What is the amount of the down payment?
(b) What is the amount to be financed?
$
(c) What are the monthly payments?
$
(d) What is the total amount of interest paid on the 20-year loan?
$
(e) What is the necessary monthly income for you to be able to afford this home? (Assume that there are no other monthly bills to consider.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdcae7ac-e7db-4254-84a0-e83f6ce34c19%2F5dc6e5d1-828c-4c44-bff7-2165f752767f%2Fl3ku9vm_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that you want to purchase a home for $195,000, with a 20-year mortgage at 7.5% interest. Suppose that you can put 20% down. (Use this table to calculate your answer. Round
your answers to the nearest cent.)
(a) What is the amount of the down payment?
(b) What is the amount to be financed?
$
(c) What are the monthly payments?
$
(d) What is the total amount of interest paid on the 20-year loan?
$
(e) What is the necessary monthly income for you to be able to afford this home? (Assume that there are no other monthly bills to consider.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1: Given
Price of home:
Rate of interest:
Down payment :
Year of mortgage: years
Note: We are allowed to solve 3 subparts at a time
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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