Suppose that you would like to buy a home priced at $200,000. You plan to make a payment of 10% of the purchase price and pay 1.
2% of the purchase price into an
escrow account annually.
a. Compute the total monthly payment and the total interest paid over the life of the loan for a 30-year mortgage at 4.8% annual interest.
b. Compute the total monthly payment and the total interest paid over the life of the loan for a 20-year mortgage at 4.8% annual interest.
escrow account annually.
a. Compute the total monthly payment and the total interest paid over the life of the loan for a 30-year mortgage at 4.8% annual interest.
b. Compute the total monthly payment and the total interest paid over the life of the loan for a 20-year mortgage at 4.8% annual interest.
1 answer:
Answer:
see below
Step-by-step explanation:
When you must do the same tedious calculation several times with different numbers, it is convenient to let a spreadsheet program do it for you. Here, the spreadsheet function PMT( ) computes the payment amount for the given interest rate, number of payments, and loan amount.
The loan amount is 90% of the purchase price.
The total interest over the life of the loan is the sum of the payments less the original loan amount.
The total monthly payment is the sum of the loan payment and the monthly escrow amount, which is 1/12 of the annual escrow amount.
_____
Here, we computed the total of payments using the unrounded "exact" value of each payment. We take this to be a better approximation of the total amount repaid, since the last payment always has an adjustment for any over- or under-payment due to rounding.
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Answer:
The point of intersection of the system of equations is:
(x, y) = (-2, 1)
The correct system of equations intersect at point A in this graph will be:
Thus, the second option is correct.
Step-by-step explanation:
Given the point
- A (-2, 1)
Let us check the system of equations to determine whether it intersect at point A in this graph.
Given the system of equations
Arrange equation variable for elimination
so
so the system of equations becomes
Solve 7x = -14 for x
Divide both sides by 7
Simplify
For y - 4x = 9 plug in x = 2
Subtract 8 from both sides
Simplify
y = 1
Thus, the solution to the system of equations is:
(x, y) = (-2, 1)
From the attached graph, it is also clear that the system of equations intersects at point x = -2, and y = 1.
In other words, the point of intersection of the system of equations is:
(x, y) = (-2, 1)
Therefore, the correct system of equations intersect at point A in this graph will be:
Thus, the second option is correct.
