Question

7. -/3 points HarMath Ap 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 $320,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 13 years. The interest rate on the debt is 13%, 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? Read It Watch It Talk to a Tutor 8. + -/3 points HarMathAp 12 6.5.020 My Notes Ask Your Teacher John Fare purchased $12,000 worth of equipment by making a $2000 down payment and promising to pay the remainder of the cost in semiannual payments over the next 5 years. The interest rate on the debt is 10%, compounded semiannually. Find the following. (Round your answers to the nearest cent.) (a) the size of each payment (b) the total amount paid over the life of the loan (c) the total interest paid over the life of the loan Need Help? Read It Talk to a Tutor 9. + -12 points harmathap12 6.5.023.nva My Notes Ask Your Teacher A couple purchasing a home budget $2000 per month for their loan payment. If they have $18,000 available for a down payment and are considering a 25-year loan, how much can they spend on the home at each of the following rates? (Round your answers to the nearest cent.) (a) 6.8% compounded monthly (b) 7.1% compounded monthly Need Help? Talk to a Tutor

Answer 1

9 Selutiou Loan ameunte 32qcOO-150,0od $01000 Time 13 yeors periods Cn) = 13x2 pevioolic 0.065 Cin deimel) raile (r)131.6.51. PE CPV) nCatT-T P 0.065(170,00) -CT006526 P 13718-1 a) ize o Each payment B13718.11 6) To tal amount paiel for bureh ase 150,00 4 13718-1) (2.6 S06,640.86 Tota lutrest paio C) S06, 670.86 320,0UD 186.670.86