4. If you were going to buy your home from Mrs. Beach for $200,000 with a...

4. If you were going to buy your home from Mrs. Beach for $200,000 with a 10% down payment, 15 year mortgage and an interest rate of 5%.

a. How much would your payments be each month?

b. What would be the principal and interest payment on the first payment?

c. What would be the principal and interest payment on the twelfth payment?

d. What type of a problem is this? ___________

5. Same problem as above, but assume that the loan was for 20 years?

a. What is the new payment?

b. What would be the principal and interest payment on the first payment?

c. What would be the principal and interest payment on the twelfth payment?

d. What type of a problem is this? ___________

Solutions

Expert Solution

If you have any doubt, ask me in the comment section please.

jeff jeffy answered 1 year ago

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