thomas crown wants to buy a home valued $795,000 if he has 28% of this amount saved for down payment how much have they saved?
1 answer:
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Answer:
a. $311,555.26
b. $500,000
c. $188,444.74
Step-by-step explanation:
The computation is shown below:
a. Here we have to determine the present value
Given that
PMT = $25,000
NPER = 20
RATE = 5%
FV = $0
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
after applying the above formula, the amount that need in the beginning is $311,555.26
b. The total money should be
= $25,000 × 20 years
= $500,000
c. The amount of interest is
= $500,000 - $311,555.26
= $188,444.74
