2 Sheila pays $8,000 down on a $120,000 house, and finances the remainder at 20) 7.5%...

Question

Question

Answer 1

Answer #1

Total Payment Made after 20 Years if Compounded Monthly is-

=[($120000 - $8000){(1+7.5/12*100)^20*12}]

=$1,12,000 * (1.00625)^20*12

=$1,12,000 * 4.46082

=$4,99,611.51

After 20 years, Total amount paid by Sheila = $4,99,611.51

Monthly Payment = $4,99,611.51/12*20

= $ 2081.715

Total of all Monthly payments = $ 4,99,611.51

Total Cost of Interest = $4,99,611.51 - $1,12,000

= $ 3,87,611.51

If you have any query related to above answer, then you can ask me in comment.

My first priority is yours satisfaction.

Thanks.

Add a comment

Answer 2

Similar Homework Help Questions

A man buys a house for $255,000. He pays $40,000 down and takes out a mortgage...

A man buys a house for $255,000. He pays $40,000 down and takes out a mortgage at 6.9% on the balance. Find his monthly payment and the total amount of interest he will pay if the length of the mortgage is (a) 15 years; (b) 20 years; (c) 25 years. (d) When will half the 20-year loan be paid off? (a) For the 15-year mortgage, the man will make monthly payments of $| (Do not round until the final answer....
Mark and Natalie want to buy a house selling for $120,000. They will put $20,000 down...

Mark and Natalie want to buy a house selling for $120,000. They will put $20,000 down as a down payment and finance $100,000. A) If the bank offers a 30 year mortage at 5.4% annual interest compounded monthly, what will their monthly payment be? B) How much of the first monthly payment will go towards paying down the loan? C) Approximately how much interest will they pay if they make all the loan payments on time?
You want to buy a house that costs $280,000. You will make a down payment equal to 15 percent of the price of the house...

You want to buy a house that costs $280,000. You will make a down payment equal to 15 percent of the price of the house and finance the remainder with a loan that has an interest rate of 5.47 percent compounded monthly. If the loan is for 25 years, what are your monthly mortgage payments?

(24-25). You are buying a house for $120,000. With a 20% down payment, the lender will...

(24-25). You are buying a house for $120,000. With a 20% down payment, the lender will finance the remainder of the purchase price with a 30 year CPM with bi-weekly payments at 7% annual rate. (hint: there are 26 bi-weekly periods in one year) 24. Approximately how many payments does it take to reduce the loan balance to $60,000? a. 296 b. 362 c. 484 d. 578 25. If at the end of year 5 you made one payment of...
you want to buy a house that costs $225,000. you will make a down payment equal...

you want to buy a house that costs $225,000. you will make a down payment equal to 20 percent of the price of the house and finance the remainder with a loan that has an apr of 5.25 percent compounded monthly. If the loan is for 30 years, what are your monthly mortgage payments?
Madeoff's Mortgage. Bernie Madeoff pays $220 comma 000 for a new four-bedroom 2,400-square-foot home outside Tonopah,...

Madeoff's Mortgage. Bernie Madeoff pays $220 comma 000 for a new four-bedroom 2,400-square-foot home outside Tonopah, Nevada. He plans to make a 20% down payment, but is having trouble deciding whether he wants a 15-year fixed rate (6.398%) or a 30-year fixed rate (6.873%) mortgage. a. What is the monthly payment for both the 15- and 30-year mortgages, assuming a fully amortizing loan of equal payments for the life of the mortgage? b. Assume that instead of making a 20%...

A house is to be purchased for $480,000 with a 10 percent down payment. A conventional...

A house is to be purchased for $480,000 with a 10 percent down payment. A conventional 30-yr loan is used at 7.5 percent, resulting in monthly payments of $ 3,020.61. The interest portion of the first monthly payment will be what?
Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly...

Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $490 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Monthly Payment Table Factor Present Value of Loan = Table Values are Based on: n = i = Present...
a. You want to buy a $170,000 house. The loan requires 10% down, has a 7.75%...

a. You want to buy a $170,000 house. The loan requires 10% down, has a 7.75% fixed APR, and a term of 30 years. You will make monthly mortgage payments. How much will your monthly payments be? b. You want to buy a $170,000 house. The loan requires 10% down, has a 7.75% fixed APR, and a term of 30 years. You will make monthly mortgage payments. What is the total interest you will pay over the life of the...

Property sold for $330,000 with 10% down, financed at 7.5% interest for 20 years (monthly payment...

Property sold for $330,000 with 10% down, financed at 7.5% interest for 20 years (monthly payments). The property has a gross annual income of $42,000. Vacancy collection loss is 8% and expenses are $8,000 per year. What is the equity dividend rate indicated by this sale?