You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.33% APR, compounded monthly, and requiring monthly payments of $505 (Assume the value of the land is still $52.000. Round each answer to the nearest dollar) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? () What is the outstanding balance in dollars) on your loan after making 4 years of payments? S (c) How much equity (in dollars) do you have garden after 4 years?
You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.33% APR, compounded monthly, and requiring monthly payments of $505 (Assume the value of the land is still $52.000. Round each answer to the nearest dollar) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? () What is the outstanding balance in dollars) on your loan after making 4 years of payments? S (c) How much equity (in dollars) do you have garden after 4 years?
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
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Transcribed Image Text:You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.33% APR, compounded monthly, and requiring monthly payments of $505.
(Assume the value of the land is still $52.000. Round each answer to the nearest dollar)
(a) Assuming that you put some money down, what was your original loan amount (in dollars)?
S
(b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments?
(c) How much equity (in dollars) do you have in the garden after 4 years?
$
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