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Black_prince [1.1K]
2 years ago
10

A family is thinking about buying a new house

Mathematics
1 answer:
Rom4ik [11]2 years ago
3 0

Answer:

a.) 1908.30

b.) 96373.15

c.)302491.15

unrounded answers below

Step-by-step explanation:

The amount that is to be loaned out is 380000-110000=270000

The effective montly rate is .07/12=.005833333

a.)

270000=x(\frac{1-(1+.005833333)^{-(25*12)}}{.005833333})=1908.303833

b.)

use what is called the prospective method (the outstanding loan balance at time n is equal to the present value of the remaining payments)

1908.303833(\frac{1-(1+.005833333)^{-(25*12-20*12)}}{.005833333})=96373.14775

c.)

total paid= 1908.303833*12*25=572491.1499

amount of loan: 270000

Total interest paid:

572491.1499-270000=302491.1499

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