Your friend purchases a $165,000 house. He is able to make a 20% down payment. The...

Your friend purchases a $165,000 house. He is able to make a 20% down payment. The bank will give him a 30-year loan with a 4% APR.

How much interest will your friend pay over 30 years to his loan? (round to the nearest cent)

Solutions

Expert Solution

House value	165,000.00
Down payment	33,000.00
Loan period	30.00	Years
APR	4%
Loan amount	132,000.00
Annual amount to bbe paid	7,633.57

Period	Principle balance	Amount paid	Interest	Principle paid
1	132,000.00	7,633.57	5280	2,353.57
2	129,646.43	7,633.57	5185.857077	2,447.72
3	127,198.71	7,633.57	5087.948436	2,545.62
4	124,653.09	7,633.57	4986.12345	2,647.45
5	122,005.64	7,633.57	4880.225465	2,753.35
6	119,252.29	7,633.57	4770.09156	2,863.48
7	116,388.81	7,633.57	4655.552299	2,978.02
8	113,410.79	7,633.57	4536.431467	3,097.14
9	110,313.65	7,633.57	4412.545803	3,221.03
10	107,092.62	7,633.57	4283.704711	3,349.87
11	103,742.75	7,633.57	4149.709976	3,483.86
12	100,258.89	7,633.57	4010.355452	3,623.22
13	96,635.67	7,633.57	3865.426747	3,768.15
14	92,867.52	7,633.57	3714.700893	3,918.87
15	88,948.65	7,633.57	3557.946006	4,075.63
16	84,873.02	7,633.57	3394.920922	4,238.65
17	80,634.37	7,633.57	3225.374836	4,408.20
18	76,226.17	7,633.57	3049.046906	4,584.53
19	71,641.65	7,633.57	2865.665859	4,767.91
20	66,873.74	7,633.57	2674.94957	4,958.62
21	61,915.12	7,633.57	2476.604629	5,156.97
22	56,758.15	7,633.57	2270.325891	5,363.25
23	51,394.90	7,633.57	2055.796003	5,577.78
24	45,817.12	7,633.57	1832.684919	5,800.89
25	40,016.23	7,633.57	1600.649393	6,032.92
26	33,983.31	7,633.57	1359.332445	6,274.24
27	27,709.07	7,633.57	1108.36282	6,525.21
28	21,183.86	7,633.57	847.3544089	6,786.22
29	14,397.64	7,633.57	575.9056618	7,057.67
30	7,339.97	7,633.57	293.5989648	7,339.97
31	0.00	7,633.57	-1.49157E-12	7,633.57

Total interest paid	97,007.19

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You purchase a town house for $250,000. Since you are able to make a down payment...

You purchase a town house for $250,000. Since you are able to make a down payment of 20 percent ($50,000), you are able to obtain a $200,000 mortgage loan for 20 years at a 5 percent annual rate of interest. a. What are the annual payments that cover the interest and principal repayment? b. How much of the first payment goes to cover the interest? c. How much of the loan is paid off during the first year? d. What...

Adam bought a house for $220000. He is making a 20% down payment and finance the...

Adam bought a house for $220000. He is making a 20% down payment and finance the rest through a mortgage loan with an interest rate of j4=5.5%j4=5.5%. Calculate the monthly payment for the following time periods: a) 20 years: $ b) 25 years: $ c) 30 years: $

Mr. Jones has just bought a house for $250,000. He will make a down payment of...

Mr. Jones has just bought a house for $250,000. He will make a down payment of 5% on the house, and pay for the rest with a mortgage. The Bank Le Friendly offers 10-year mortgage loans at 13% APR compounded semi-annually, with monthly mortgage payments starting today. What is the amount of Mr. Jones’s monthly mortgage payment? A. $3,462.31 B. $3,498.84 C. $3,546.13 D. $3,647.40 E. $3,605.56

Shaun has enough money to put a 20% down payment on the new house he and...

Shaun has enough money to put a 20% down payment on the new house he and his family have picked out, but they will lose the emergency fund. Putting less than this down will increase his payments. What tradeoffs should he consider?

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 9 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 9 %. Find (i) The monthly payment: $ (ii) the total amount of interest paid: $

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 160000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 20-year mortgage at a rate of 10 %. Find (i) the monthly payment: $ equation editor Equation Editor (ii) the total amount of interest paid: $ equation editor Equation Editor b) a 15-year mortgage at a rate of 10 %. Find (i) The monthly payment: $ equation editor Equation Editor...

Becky Sayers wants to buy a house in five years. She hopes to be able to make a down payment of $25,000 at that time

Becky Sayers wants to buy a house in five years. She hopes to be able to make a down payment of $25,000 at that time. If the bank CD she wants to invest in will pay 5.5 percent annually, how much will she have to invest today?

You borrow $20,000 from your parents to make a house down payment at a mutually agreedupon...

You borrow $20,000 from your parents to make a house down payment at a mutually agreedupon annual interest rate of 5%, and a payback period of 5 years (direct reduction loan). What will be your annual, or monthly, payment amounts?

"I recently bought a new house for $200,000. There was a 20% down payment, and the...

"I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?" Please let me know values used in calculator or any formulas.

I recently bought a new house for $200,000. There was a 20% down payment, and the...

I recently bought a new house for $200,000. There was a 20% down payment, and the rest was financed at 4.8 percent APR with monthly compounding. Monthly payments starting from next month will be $1,248.66. How many years will it take the firm to pay off this debt?

Subjects