The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remain a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly. a) Find the Hogansons' monthly mortgage payment. b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments. c) How much interest do the Hogansons pay? What is the correct formula for this situation? [ ict 1 ¡\ ct 1
The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remain a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly. a) Find the Hogansons' monthly mortgage payment. b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments. c) How much interest do the Hogansons pay? What is the correct formula for this situation? [ ict 1 ¡\ ct 1
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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![The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remainder with
a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly.
a) Find the Hogansons' monthly mortgage payment.
b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments.
c) How much interest do the Hogansons pay?
What is the correct formula for this situation?
ct
· ²(1+yª. [(1+1)ª-,)
OA. P 1.
OB. A=-
1 +
ct
a) The Hogansons' monthly mortgage payment is $
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)
b) The total of the Hogansons' payments is $
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)
c) The Hogansons pay $ in interest.
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2539764-cbb6-4f84-96a1-bc799fc276f3%2F6430f002-443d-411a-8e9c-e7601ca7f0bd%2Fk03ny04_processed.png&w=3840&q=75)
Transcribed Image Text:The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remainder with
a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly.
a) Find the Hogansons' monthly mortgage payment.
b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments.
c) How much interest do the Hogansons pay?
What is the correct formula for this situation?
ct
· ²(1+yª. [(1+1)ª-,)
OA. P 1.
OB. A=-
1 +
ct
a) The Hogansons' monthly mortgage payment is $
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)
b) The total of the Hogansons' payments is $
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)
c) The Hogansons pay $ in interest.
(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not include
the $ symbol in your answer.)
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