M=(Lr[1+(r)/(12)]^((12t)))/(12[(1+(r)/(12))^(12t)-1])
Where: L = the loan amount in dollarsr = the annual interest rate expressed as decimalt = the number of years of the loanM = the monthly payment in dollars
You are looking to buy a $415,000.00 home in Haverhill. If Bank ofAmerica will give them a 30-year mortgage at 3.25% annual interest rate forthe cost of the house after they receive a 20% down payment.A. Determine the loan amount?B. How much their monthly payment will be?C. At the end of the 30-years, how much total money will you have paid toBank of America for your home? In another word how much did the$415,000.00 house really cost the couple?D. How much interest will they have paid?Quantitative Reasoning ProjectE. How many of her monthly payment go toward the interest?F. What percent increase over the cost of the home does this interestrepresent?G. Redo and re-answer all questions, but this time for 15 years?Do analysis comparison between 30 and 15 years mortgage (at least onepage not double spacing).
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