Question

17 A bank is offering you a loan of $10,000 for 20 years. The stated interest rate (APR) is 7%. If this is an amortized loan with monthly payment, how much is your fixed payment? Put in your answer with two decimal numbers after rounding. No dollar sign($). of Answer: 18 Suppose you are buying your first condo for $155,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? - of Select one: c a. 5884.90 b. $769.86 c. $971.49 d. $916.50 e. $925.66

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

А в с $10,000.00 20 17 Loan Amount Term in years Term in months APR Monthly interest rate 240 7% 0.583% Fixed monthly payment $77.53 11 12 155000 15000 $140,000.00 18 Condo Price Down payment Loan Amount Term in years Term in months APR Monthly interest rate 30 360 7% 0.542% Monthly payment $884.90 (a.)

Cell reference -

1 2 17 Loan Amount Term in years Term in months APR Monthly interest rate 10000 20 =C3*12 0.07 =C5/12 Fixed monthly payment =PMT(C6,C4,-C2,,0) 11 18 12 13 14 Condo Price Down payment Loan Amount Term in years Term in months APR Monthly interest rate 155000 15000 =C11-C12 30 =C14*12 0.065 =C16/12 Monthly payment =PMT(C17,C15,-C13,,0) (a.)

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.