SOLUTION: The Taylors have purchased a $180,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 9%/year on the unpaid balance.

Question 1200936: The Taylors have purchased a $180,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 9%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.)
The Taylors have purchased a $180,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 9%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.)
$1206.93 (Got this part)
Correct: Your answer is correct.

What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years? (Round your answers to the nearest cent.)
5 years:

.10 years:

20 years:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
house costs 180,000.
down payment is 30,000.
mortgage is 180 - 30 = 150,000
interest rate is 9% per year, compounded montly, = 9/12 = .75% per month.
number of months is 30 years * 12 = 360 months.
the equity in their home (disregarding appreciation or depreciaion of the value of the home over time), will be 30,000 plus whatever equity is in their home from the mortgage.
after 5 years, the equity from the mortgage is equal to 30,000 + 6,179.8 = 36,179.80.
after 10 years, the equity from the mortgage is equal to 30,000 + 15,855.38 = 45,855.38.
after 20 years, the equity from the mortgage is equal to 30,000 + 54,722.59 = 84,722.59.

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