You purchase a plot of land worth $59,000 to create a community garden, by securing a 15-year loan harging 6.44% APR, compounded monthly, and requiring monthly-payments of $425. Round all answers to he nearest dollar. a. Assuming that you put some money down, what was your original loan amount? Original Loan Amount: $ b. What is the outstanding balance on your loan after making 8 years of payments? Outstanding Balance After 8 Years: $ c. How much equity do you have in the garden after 8 years? Equity After 8 Years: $
You purchase a plot of land worth $59,000 to create a community garden, by securing a 15-year loan harging 6.44% APR, compounded monthly, and requiring monthly-payments of $425. Round all answers to he nearest dollar. a. Assuming that you put some money down, what was your original loan amount? Original Loan Amount: $ b. What is the outstanding balance on your loan after making 8 years of payments? Outstanding Balance After 8 Years: $ c. How much equity do you have in the garden after 8 years? Equity After 8 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
Problem 1PS
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How do I find the original loan amount, the outstanding balance and the equity?
Transcribed Image Text:You purchase a plot of land worth $59,000 to create a community garden, by securing a 15-year loan
charging 6.44% APR, compounded monthly, and requiring monthly-payments of $425. Round all answers to
the nearest dollar.
a. Assuming
that
you put some money down, what was your original loan amount?
Original Loan Amount: $
b. What is the outstanding balance on your loan after making 8 years of payments?
Outstanding Balance After 8 Years: $
c. How much
equity
do
you
have in the garden after 8 years?
Equity After 8 Years: $
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