Question

Problem 4 and 5-7 House Appreciation and Mortgage Payments Say that you purchase a house for $272,000 by getting a mortgage for $240,000 and paying a $32,000 down payment. If you get a 30-year mortgage with an interest rate of 7 percent, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Рayment What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.) Loan balance If the house appreciates at 3 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value

Answer 1

1.
=240000*(7%/12)/(1-1/(1+7%/12)^(12*30))
=1596.73

2.
=240000*(1+7%/12)^(12*10)-1596.73/(7%/12)*((1+7%/12)^(12*10)-1)
=205949.03

3.
=272000*1.03^10
=365545.26

4.
=1950/1.07+2150/1.07^2+2150/1.07^3+2450/1.07^4
=7324.46

5.
=220/7.3%
=3013.70

6.
Decrease

7.
=(2.89/2.54)^(1/12)-1
=1.081577%