Use PMT P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%. P=$209,000 - $41,800 = $167,200 Down Pymt= $41800 Rate= 9.5% or 0.095 Time = 30 years fixed Points= 3 or 0.03 (167200*0.03=5106) N=12 167200(0.095/12) = 1323.666666666667 divided by: (1-(1+0.095/12)-12(30) = -360 (1-(1.007916666666667)-360 = 17.09486179680438 1-17.09486179680438 = -16.09486179680438 1323.6666666667 / -16.09486179680438 (this is the one I am having trouble calculating on my calculator) Please help me understand what I'm doing wrong on the bottom calculation.
Use PMT P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%. P=$209,000 - $41,800 = $167,200 Down Pymt= $41800 Rate= 9.5% or 0.095 Time = 30 years fixed Points= 3 or 0.03 (167200*0.03=5106) N=12 167200(0.095/12) = 1323.666666666667 divided by: (1-(1+0.095/12)-12(30) = -360 (1-(1.007916666666667)-360 = 17.09486179680438 1-17.09486179680438 = -16.09486179680438 1323.6666666667 / -16.09486179680438 (this is the one I am having trouble calculating on my calculator) Please help me understand what I'm doing wrong on the bottom calculation.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
Use PMT P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%.
P=$209,000 - $41,800 = $167,200
Down Pymt= $41800
Rate= 9.5% or 0.095
Time = 30 years fixed
Points= 3 or 0.03 (167200*0.03=5106)
N=12
167200(0.095/12) = 1323.666666666667
divided by: (1-(1+0.095/12)-12(30) = -360
(1-(1.007916666666667)-360 = 17.09486179680438
1-17.09486179680438 = -16.09486179680438
1323.6666666667 / -16.09486179680438 (this is the one I am having trouble calculating on my calculator)
Please help me understand what I'm doing wrong on the bottom calculation.
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 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: A continuous flow calorimeter was used to obtain the calorific value of a sample of fuel and the…
Q: Sketch and explain a PV Diagram and a Temperature Entropy Diagram for a 4 stroke diesel engine
Q: A three-phase transmission line supplies power to three loads at a voltage
408 Vrms (line to line).…
Q: answer the fallowing
Brake Specific Fuel Consumption - 0.3 kg/kwh,
Mechanical Efficiency- 90%…
Q: A homeware company has been approached to manufacture a cake tin in the shape
of a "ghost" from the…
Q: Can you help me to solve the question?
Q: Define sinc(x) = sin(x)/x, except with the singularity removed. Differentiate sinc(x) once and…
Q: Use Taylor Series to derive the entries to the pentadiagonal and heptadiagonal (septadiagonal?)…
Q: Show that the function f(x) = sin(x)/x has a removable singularity. What are the left and right…
Q: 1.5. Run Programs 1 and 2 with esin(x) replaced by (a) esin² (x) and (b) esin(x)| sin(x)||
and with…
Q: 1.6. By manipulating Taylor series, determine the constant C for an error expansion
of (1.3) of the…
Q: 1.3. The dots of Output 2 lie in pairs. Why? What property of esin(x) gives rise to
this behavior?
Q: 1.4. Run Program 1 to N
=
216 instead of 212. What happens to the plot of
error vs. N? Why? Use the…
Q: Whentheuserenters!!,themostrecentcommandinthehistoryisexecuted.In the example above, if the user…
Q: #include <linux/module.h> #include <linux/kernel.h> // part 2 #include…
Q: 2. UNIX Shell and History Feature [20 points]
This question consists of designing a C program to…
Q: The following data were taken during a one-hour trial run on a single cylinder, single acting,…
Q: List at least five Operating Systems you know.
What is the difference between the kernel mode and…
Q: Question#2: Design and implement a Java program using Abstract Factory and Singleton design…
Q: In the GoF book, List interface is defined as follows:
interface List {
int count(); //return the…
Q: General accounting