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Mrac [35]
2 years ago
6

CNBC.com reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed rate mortgages to 4.03%. D

ennis Natali wants to purchase a vacation home for $250,000 with 20% down. Calculate his monthly payment for a 22-year mortgage at 7.0%. Calculate total interest. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
Business
1 answer:
guapka [62]2 years ago
7 0

From the information given, the total interest payable on the mortgage is 290, 659.84 See the calculation and analysis below.

<h3>What is the calculation on the above mortgage scenario?</h3>

We are given

Vacation Home purchase amount = $250,000

Down payment = 20% i.e. $235,000 X 20% = $50,000

Loan Amount = $250,000 - $50,000

Rate = 7%

Period = 22 years = 22 x 12 = 264 monthly installment

Monthly installment = $1,858.56 (See attached spread sheet).

Recall that Total interest paid

= Monthly Installment X N - Principle loan amount

Hence,

1,858.56 x 264 - 200,000

= 490,659.84 - 200,000

Total interest paid = 290, 659.84

Learn more about interest on mortgage at;
brainly.com/question/1318711
#SPJ1

Download xlsx
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