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

(ii) the total amount of interest paid: $

Solutions

Expert Solution

milcah answered 1 year ago

Next > < Previous

Related Solutions

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: $

The adam smith family just purchased a 350,000 house with an 110,000 down payment and a...

The adam smith family just purchased a 350,000 house with an 110,000 down payment and a 30 year mortgage loan at 6.50% annually, with a monthly compounding. payments are made monthly. What is the remaining balance on the mortage after 15 years?

"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?

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

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: $

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. a. Calculate the monthly payments. b- Calculate the 1st month interest payment. c-Calculate the 1st month principal payments

You are planning to buy a house in New Jersey. You put a 20% down payment,...

You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. A. Calculate the 1st month interest payments B.Calculate the 1st month principal payments C. Calculate the monthly payments. Place answer in the box below and use 2 decimals and no $ sign

You are buying a house for $350,000 with a 20% down payment. You use a 30-year...

You are buying a house for $350,000 with a 20% down payment. You use a 30-year monthly amortized mortgage at a 5.75% nominal interest rate. Monthly payments are &1,634. What is the estimated payoff on the mortgage after you have paid for 10 years?

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?

Subjects