1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alex17521 [72]
2 years ago
11

11. Twyla and Tony have a 30/5 balloon mortgage for $389,900 with a rate of 4.85%. How much will they pay in interest over the l

ife of the loan? (3 points)
O $81,373.41

$92,263.82

O $107,536.50

O $121,390.73
Mathematics
1 answer:
kykrilka [37]2 years ago
6 0

Answer:

Explanation:

Twyla and Tony with a balloon mortgage of 30/5 will make constant payments over the space of 5 years and then complete the bulk balloon payment for 25 years remaining.

Given mortgage loan value of $389900

Interest rate of 4.85%

We are asked to calculate the interest over the life of the loan.

We will calculate interest by calculating constant payments over the period of 5 years before balloon payment is due and adding them together then subtracting the mortgage loan given $389900

Formula for constant payments :

A= P×r×r(1+r)^n/(1+r)^n-1

Where A= constant/monthly payments

r= interest rate on the mortgage loan

n= number of payments = 30×12= 360

P= mortgage loan given

A= $389900×0.0485×0.0485(1+0.0485)^360/(1+0.0485)^360-1

=$389900×0.0485×1231340.79/25388468.94

=$389900×0.0485×0.04850

A= $917.142

Payment for five years(with interest)= $917.142×60= $55028.52

Calculate balloon payment:

FV= PV(1+r)^n - P((1+r)^n-1/r)

Where FV= future value of balloon payment

PV= initial loan given

r= interest rate on loan

n= number of payments

P= monthly payments

Substitute:

FV= $389900(1+0.0485/12)^60-917.142((1+0.0485/12)^60-1/0.0485/12)

=$389900×1.2738-917.142(0.2738/0.004041)

=$389900×1.2738-917.142×67.756

= 496654.62-62141.87

FV = $434512.75

Therefore total payment made with interest over the life of the loan= balloon payment+ constant payments for five years= $434512.75+$55028.52

=

You might be interested in
What is the probability of drawing a jack from a standard deck of cards, replacing it,shuffling, then drawing an ace?
xz_007 [3.2K]

- We have 52 cards in a deck of cards.

- We have 4 cards of the same number (4 jack, 4 aces...).

Probability of drawing a jack = 4/52

Probability of drawing a jack followed by an ace =(4/52)*(4/52)=0.00592

6 0
9 months ago
Oi tu bem com voces eu sou novo oiiiiii
True [87]

Answer:

Please post useful questions thanks!

Step-by-step explanation:

6 0
2 years ago
Read 2 more answers
The world's largest ocean, the Pacific ocean, has an area of about 200,000,000 km^(2) , which can be written as 2 x 10 ^(n) km^(
BlackZzzverrR [31]
N=8. All you have to do is count the amount of numbers after the 2 in 200,000,000. There are 8 numbers after the number 2 which makes n=8.
6 0
3 years ago
Read 2 more answers
The probability that you roll a 5 on a six-sided die is start fraction one over six end fraction . The probability that you flip
Anarel [89]
I am not sure about the probability but I cant tell you these events are independent because u don't need to roll a five for a coin to land on heads
7 0
3 years ago
Read 2 more answers
Help please <br> Solve for r.<br><br> s=2πrh
tester [92]
S/2πh=r

hope this helps u
4 0
2 years ago
Read 2 more answers
Other questions:
  • The scores of students on the ACT college entrance exam in a recent year had the normal distribution with mean  =18.6 and stand
    13·1 answer
  • which equation demonstrates the use of a simple interest formula, , to compute the interest earned on $70 at 3% for 12 years?
    14·1 answer
  • Find the coordinates of the midpoint MM of ST. Then find the distance between points SS and TT. Round the distance to the neares
    7·1 answer
  • Find the slope of the line through the given points. d (3, 7) and (3, −8)
    7·1 answer
  • Help pls i don’t understand graphs!! &lt;3
    5·1 answer
  • Please help need quickly
    7·1 answer
  • I need help please ​
    10·2 answers
  • For what value of x is the equation 2x-3 over -3+4 =3 true
    12·2 answers
  • Can someone please help me
    14·1 answer
  • 5/x+3=4/x simplify please
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!