Mmon Multiple mmon multiple (LCM) of the 10, 30, and 15 Numbers
1 answer:
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Answer:
Their monthly house payment is of $2,184.65.
Step-by-step explanation:
Compound interest:
The compound interest formula is given by:
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
A family buys a new home for $212,500 and pays a 20% down payment ($42,500).
This means that the loan is of 212,500 - 42,500 = $170,000, that is,
Value of the loan in 15 years:
15 years means that
5.75% interest means that
Compounded yearly, so
Then
Monthly payment:
Total of $393,237 in 15*12 months. So
Their monthly house payment is of $2,184.65.