A couple has decided to purchase a $150000 house using a down payment of $17000. They can amortize the balance at 11% over 30 years.

A couple has decided to purchase a $150000 house using a down payment of $17000. They can amortize the balance at 11% over 30 years.
a) What is their monthly payment?
Answer = $  1265.78
b) What is the total interest paid?
Answer = $  322680.8
c) What is the equity after 5 years?
Answer = $
d) What is the equity after 25 years?
Answer = $

Equity is assets minus liability. So you want to find the present value of the loan after 5 years and 25 years, then subtract those from the value of the house, which ignores the down payment

Expert Solution

Colby Messinger answered 1 year ago

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