You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.85% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $

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 want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan
at 4.85% interest for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be?
$
c) How much total interest do you pay?
$
d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?
$
e) How much money in interest will you save if you finance for 15 years instead of 30 years?
$
Transcribed Image Text:You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.85% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years? $
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