Question

8. 0.54/1.11 points Previous Answers 1/6 Submissions Used My Notes The Turners have purchased a house for $150,000. They made an initial down payment of $40,000 and secured a mortgage with interest charged at the rate of 7%/year compounded monthly on the unpaid balance. The loan is to be amortized over 30 yr. (Round your answers to the nearest cent.) (a) What monthly payment will the Turners be required to make? $ 731 83 (b) How much total interest will they pay on the loan? $ 113458 80 (c) What will be their equity after 10 years? $ 55,606 38 (d) What will be their equity after 22 years? $ 86969.91

Answer 1

Solutim Given th Here Mostly payment is given by PEAL (CElton 1 ltc)n-1 ca monthly interest rate 28/12 n = rouf month to core amount A = 120,000 8=70). f = 314 r >>C= = 0-07 =5.83 X10 3 h-12X4->12830 =360 @ mothly payment = P(1+r)x (City)n-1) 360 12 => 120000 ( it or ) X0:07 1 +0:07)360 - 12 → 5681054145 - 7. 11648779 => 798.363128 b) Total interest = monthly payment X360 -120.000 $ 798.363128 X 360-120,000 => 1674 10.726 E CIO = Px10X 12 +30,000 clo = 798.36 3128 X 10 X 12+30,000 (10=125803.575 1 E22 = P822 *12+ 30,000 cs 522-798. 363128 X22X12+ 30,000 Scanned with CamScanneE22 = 240,767.8667