Use the following amortization chart: Selling price of home $90,000 Down payment $ 5,000 Principal (loan) $ 85,000 Total cost of interest Rate of interest 10% Years 30 Payment per Monthly mortgage $1,000 $5.67789 payment $ 482.62 Assume the interest rate rises to 7%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) Note: Round your intermediate calculations and final answer to the nearest cent.
Use the following amortization chart: Selling price of home $90,000 Down payment $ 5,000 Principal (loan) $ 85,000 Total cost of interest Rate of interest 10% Years 30 Payment per Monthly mortgage $1,000 $5.67789 payment $ 482.62 Assume the interest rate rises to 7%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) Note: Round your intermediate calculations and final answer to the nearest cent.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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Rate of interest 5 1/2 equals 5.67789 of 30 years
![Use the following amortization chart:
Selling price
of home
$ 90,000
Down payment
$ 5,000
Principal
(loan)
$ 85,000
Total cost of interest
Rate of
interest
107
Years
30
Payment per
$1,000
$ 5.67789
Monthly mortgage
payment
$ 482.62
Assume the interest rate rises to 7%. What is the total cost of interest with the new interest rate? (Use Table 15.1.)
Note: Round your intermediate calculations and final answer to the nearest cent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e9713e7-c47e-496c-a8c8-3342ae7157eb%2F1f97d9fd-5e99-44df-9a36-d2ab02297c98%2F9c007kq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following amortization chart:
Selling price
of home
$ 90,000
Down payment
$ 5,000
Principal
(loan)
$ 85,000
Total cost of interest
Rate of
interest
107
Years
30
Payment per
$1,000
$ 5.67789
Monthly mortgage
payment
$ 482.62
Assume the interest rate rises to 7%. What is the total cost of interest with the new interest rate? (Use Table 15.1.)
Note: Round your intermediate calculations and final answer to the nearest cent.
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