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Viefleur [7K]
3 years ago
15

Let’s suppose you would like to buy a home for $250,000. But like most U.S. citizens, you don’t have enough cash on hand to pay

for the full house. But we’re in luck! Signature Bank has agreed to offer you a 30-year mortgage loan, but requires that you pay 20 percent down ($50,000 = 20% of $250,000) to qualify for their mortgage loan of $200,000 in this way:
$250,000 Cost of home
50,000 Required 20% down payment ($50,000 = 20% of $250,000) (The cash you need to have available to pay when closing on the home)
$200,000 Amount of the bank loan
1. Calculate the monthly payment for a 30-year mortgage loan.2. Calculate the amount of interest that you’d pay for a 30-year mortgage loan.3. How much interest do you pay over the life of a 30-year mortgage?
4. To compute the mortgage payments, we’ll need to know a few things:A. The size of the mortgage loan.B. The interest rate.
C. The length of the loan (number of months).
Business
1 answer:
noname [10]3 years ago
8 0

Answer:

1. Calculate the monthly payment for a 30-year mortgage loan.

we can do this by using the present value of an annuity formula

the loan's interest rate is missing, so I looked for a similar question and found that it is 6%

present value = monthly payment x annuity factor

monthly payment = present value / annuity factor

  • present value = $200,000 (loan's principal)
  • PV annuity factor, 0.5%, 360 periods = 166.79161

monthly payment = $200,000 / 166.79161 = $1,199.101082 ≈ <u>$1,199.10</u>

2. Calculate the amount of interest that you’d pay for a 30-year mortgage loan.

total interests paid during the 30 years = (monthly payment x 360) - principal = ($1,199.10 x 360) - $200,000 = <u>$231,676</u>

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2 years ago
There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the f
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The supply of a product or the units of a product that is offered to potential customers should always meet the number of real customers. In the same way, the price of the product should meet the price customers are willing to pay.

In this context, the best is that only firm A and C cut hair, this is because their prices per cut ($25 and $30) match the consumers' willingness to pay this includes Lorenzo ($35), Gilberto ($50), Juanita ($40) and Neha ($25).

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