Question

Submit Answer Practice Another Version -/3 points HarMathAp 12 6.5.017. My Notes Ask Your Teacher The problem describes a debt to be amortized (Round your answers to the nearest cent.) A man buys a house for $370,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next years. The interest rate on the debt is 5%, compounded semiannually (a) Find the size of each payment. (b) Find the total amount paid for the purchase (c) Find the total interest paid over the life of the loan Need Help? 3. -/4 points My Notes Ask Your Teacher some barks now have blwoolly mortopes (that is, with payments every other wook). Compare 20 year $120.000 loan at 6.706 by finding the parment size and the total interest gold over the te of the loan under each of the following conditions. (Uso Excet. Round your answers to the nearest cent.) (a) Payments are monthly and the rate is 1.7. compounded monthly o e 9

Answer 1

SOLUTION: Semiannual Period ni viono Payment $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.48 $ 23,441.45 Principal Paid $ 14,641.48 $ 15,227.14 $ 15,836.22 $ 16,469.67 $ 17,128.46 $ 17,813.60 $ 18,526.14 $ 19,267.19 $ 20,037.88 $ 20,839.39 $ 21,672.97 $ 22,539.86 Interest Paid S 8,800.00 S 8.214.34 $ 7,605.26 $ 6,971.81 $ 6,313.02 $ 5,627.88 $ 4,915.34 $ 4.174.29 S 3,403.60 $ 2,602.09 $ 1,768.51 $ 901.59 Remaining Balance $ 205,358.52 $ 190,131.38 $ 174.295.16 $ 157.825.49 $ 140,697.03 $ 122,883.43 $ 104.357.29 $ 85,090.10 $ 65,052.22 $ 44,212.83 $ 22,539.86 $0 Totals $ 281,297.73 $ 220,000.00 $61,297.73 1) Size of each loan payment: $23,441.48 2) Total amount paid: $150,000 + $281.297.43 = $431,297.43 3) Total interest paid: $61,297.75