ZuoTi.Pro
Question

You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash...

You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will your annual payment be if you sign this mortgage?

business   finance   
0 1
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

step 1) 1/0.07* (1-1/ (1+0.07))^30= 12.4090411835

step 2) 350,00- 50,000= 300,000

step 3) 300,000/ 12.4090411835= 24,175.921053345

Answer: 24,176

answered by: Andrew San Andres
2 1
Add a comment
Know the answer?
Add Answer to:
You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash...

    You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires monthly payments and has an APR of 6% per year. What will your monthly payment be if you take this mortgage?

  • "You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash...

    "You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. You can afford to pay only $23,500 per year. The bank agrees to allow you to pay this amount each year, yet...

  • You are thinking of purchasing a house. The house costs $ 350 comma 000. You have...

    You are thinking of purchasing a house. The house costs $ 350 comma 000. You have $ 50 comma 000 in cash that you can use as a down payment on the​ house, but you need to borrow the rest of the purchase price. The bank is offering a 30​-year mortgage that requires annual payments and has an interest rate of 7 % per year. What will your annual payment be if you sign up for this​ mortgage?

  • You are thinking of purchasing a house. The house costs $ 200 comma 000$200,000. You have...

    You are thinking of purchasing a house. The house costs $ 200 comma 000$200,000. You have $ 29 comma 000$29,000 in cash that you can use as a down payment on the​ house, but you need to borrow the rest of the purchase price. The bank is offering a 3030​-year mortgage that requires annual payments and has an interest rate of 6 %6% per year. What will be your annual payment if you sign this​ mortgage?

  • You would like to buy a house that costs $350,000. You have $50,000 in cash that...

    You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering you a 30-year mortgage that requires annual payments and has an interest rate of 8% per year. You can afford to pay only $25,580 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $300,000....

  • XP 4-35 (similar to) You are thinking of purchasing a house. The house costs $250,000. You...

    XP 4-35 (similar to) You are thinking of purchasing a house. The house costs $250,000. You have $36,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 8% per year. What will be your annual payment if you sign this mortgage? The annual payment is $ . (Round...

  • P 4-35 (similar to) Question Help You are thinking of purchasing a house. The house costs...

    P 4-35 (similar to) Question Help You are thinking of purchasing a house. The house costs $200,000. You have $29,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will be your annual payment if you sign this mortgage? The annual payment is (Round...

  • You expect to have $ 6,000 in one year. A bank is offering loans at 5.0...

    You expect to have $ 6,000 in one year. A bank is offering loans at 5.0 % interest per year. How much can you borrow​ today? Today you can borrow ​$           . ​(Round to the nearest​ cent.) You are thinking of building a new machine that will save you $ 1,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 1 % per year forever. What is the...

  • You would like to buy a house that costs $ 350 comma 000. You have $...

    You would like to buy a house that costs $ 350 comma 000. You have $ 50 comma 000 in cash that you can put down on the​ house, but you need to borrow the rest of the purchase price. The bank is offering a​ 30-year mortgage that requires annual payments and has an interest rate of 7 % per year. You can afford to pay only $ 23 comma 500 per year. The bank agrees to allow you to...

  • Time Remaining: 01:56.19 Submit Quiz Quiz: Chapter 4 Quiz (Copy) This Question: 1 pt 5 of...

    Time Remaining: 01:56.19 Submit Quiz Quiz: Chapter 4 Quiz (Copy) This Question: 1 pt 5 of 9 This Quiz: 9 pls possible You are thinking of purchasing a house. The house costs $250,000 You have $36.000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 10% per year....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT