1]
Down payment = cost of house * down payment %
Down payment = $500,000 * 20% = $100,000
2]
Loan amount = cost of house - down payment
Loan amount = $500,000 - $100,000 = $400,000
3]
Monthly loan payment is calculated using PMT function in Excel :
rate = 5% / 12 (converting annual rate into monthly rate)
nper = 30*12 (30 year loan with 12 monthly payments each year)
pv = 400000 (loan amount)
PMT is calculated to be $2,147.29
4]
Total interest paid = (monthly payment * total number of payments) - loan amount
Total interest paid = ($2,147.29 * (30 * 12)) - $400,000
Total interest paid = $373,023.14
[2 points] Suppose that 15 years ago you bought a home for $500,000, paying 20% as...
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