(a) Down payment=$50000
Cost of house=$300000
Therefore loan amount,P=300000-50000=$250000
Yearly interest rate=6.25%=.0625
Monthly interest rate i=.0625÷12=.0052
No of years=15
Therefore total no of months,N=15×12=180 months
Monthly payment is given by equation,
c=rP((1+r)^N))/(((1+r)^N)-1)
=
=
=3306.661/1.543=$2143.007
(b)Principal amount at beginning of 60th payment=amount owed at end of month 59
=
=
=339497.299-147533.337=$191963.962
Therefore interest rate to be paid at 60th month=r×principal amount remaining at end of 59th month
=.0052×191963.962=$998.21
Thank you for the question.
Keep Chegging.
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