Question

In: Advanced Math

The Taylors have purchased a $350,000 house. They made an initial down payment of $10,000 and...

The Taylors have purchased a $350,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.) _____________


What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years? (Round your answers to the nearest cent.)

5 years- $________

10 years- $________

15 years-$_________

Solutions

Expert Solution

price of home is $350,000

down payment is $10,000

loan amount L is

L=350000-10000

L=340000

r=6% = 0.06

t=30 years

n=12 for monthly payment

..............monthly payment

.

.

.

.

equity is given by

equity = price of home - remaining balance

find equity after 5 years

.

remaining years is t=30-5=25

r=6% = 0.06

PMT=2038.47178

n=12 for monthly payment

.

.

.

.

.

find equity after 10 years

.

remaining years is t=30-10=20

r=6% = 0.06

PMT=2038.47178

n=12 for monthly payment

.

.

.

.

find equity after 15 years

.

remaining years is t=30-15=15

r=6% = 0.06

PMT=2038.47178

n=12 for monthly payment

Colby Messinger answered 2 years ago
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