You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 20-year loan, charging 8.54% APR, compounded monthly, and requiring monthly payments of $365. Round each answer to the nearest dollar. a. Assuming that you put some money down, what wal your original loan amount? Original Loan Amount: $ 41936 b. What is the outstanding balance on your loan after making 10 years of payments? Outstanding Balance After 10 Years: $ c. How much equiry do you have in the garden after 10 years? Equity After 10 Years: $ 10063

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
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You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 20-year loan, charging 8.54%
APR, compounded monthly, and requiring monthly payments of $365.
Round each answer to the nearest dollar.
a. Assuming that you put some money down, what wal your original loan amount?
Original Loan Amount: $ 41936
b. What is the outstanding balance on your loan after making 10 years of payments?
Outstanding Balance After 10 Years: $
c. How much equiry do you have in the garden after 10 years?
Equity After 10 Years: $ 10063
Transcribed Image Text:You purchase a plot of land worth $52,000 to create a community garden. To do so, you secure a 20-year loan, charging 8.54% APR, compounded monthly, and requiring monthly payments of $365. Round each answer to the nearest dollar. a. Assuming that you put some money down, what wal your original loan amount? Original Loan Amount: $ 41936 b. What is the outstanding balance on your loan after making 10 years of payments? Outstanding Balance After 10 Years: $ c. How much equiry do you have in the garden after 10 years? Equity After 10 Years: $ 10063
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