You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 6.75% annual interest rate for the cost of the house after they receive a 10% down payment. A. Determine the loan amount? B. How much their monthly payment will be? C. At the end of the 30-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $275,599.00 house really cost the couple?
You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 6.75% annual interest rate for the cost of the house after they receive a 10% down payment. A. Determine the loan amount? B. How much their monthly payment will be? C. At the end of the 30-years, how much total money will you have paid to Bank of America for your home? In another word how much did the $275,599.00 house really cost the couple?
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
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I need help with part D, E, F, and G please.
Transcribed Image Text:The following formula is used for figuring out a monthly home mortgage
рayment:
7(12t)
r
Lr|1+
12
M =
12t
12|| 1+
12
-1
L= the loan amount in dollars
r= the annual interest rate expressed as decimal
t= the number of years of the loan
M= the monthly payment in dollars
Where:
You are looking to buy a $275,599.00 home in Haverhill. If Bank of
America will give them a 30-year mortgage at 6.75% annual interest rate for
the cost of the house after they receive a 10% down payment.
A. Determine the loan amount?
B. How much their monthly payment will be?
C. At the end of the 30-years, how much total money will you have paid to
Bank of America for your home? In another word how much did the
$275,599.00 house really cost the couple?
D. How much interest will they have paid?
E. How many of her monthly payment go toward the interest?
F. What percent increase over the cost of the home does this interest
represent?
G. Redo and re-answer all questions, but this time for 15 years?
Do analysis comparison between 30 and 15 years mortgage (at least one
page not double spacing).
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