document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=65148>Question 65148</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A)mary decides to purchasea house that cost $262,500.00 the bank requires a 10% downpayment and will provide a 15 year mortgage at annual interest rate of 8.0%. Calculate the mortgage loan amount, the monthly payment required to amortize the loan and the total interest paid(assume all the payments are made).use four 4 deciaml places then round dollar values to tthe nearest penny.<BR>\n" );
document.write( "Mortgage payments are made each month(monthly)\r<BR>\n" );
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document.write( "b) create an amortization schedule for the first 4 months of Marys mortgage.\r<BR>\n" );
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document.write( "C) What is Marys approximate remaining balance after 59 payments have been made? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #45702 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=45702\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A)mary decides to purchasea house that cost $262,500.00 the bank requires a 10% downpayment and will provide a 15 year mortgage at annual interest rate of 8.0%. Calculate the mortgage loan amount, the monthly payment required to amortize the loan and the total interest paid(assume all the payments are made).use four 4 deciaml places then round dollar values to tthe nearest penny.<BR>\n" );
document.write( "Mortgage payments are made each month(monthly) <BR>\n" );
document.write( "b) create an amortization schedule for the first 4 months of Marys mortgage. <BR>\n" );
document.write( "C) What is Marys approximate remaining balance after 59 payments have been made?<BR>\n" );
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document.write( "After the 10% down payment the mortgaged amount is $236,250<BR>\n" );
document.write( "Formula for monthly regular payment =[Pi]/[1-(1+i)^-N]<BR>\n" );
document.write( "where P=principal borrowed; N=# of payments; i=periodic interest rate<BR>\n" );
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document.write( "monthly payment=[236,250*.08/12)]/[1-(1+0.08/12)^-(12*15)]<BR>\n" );
document.write( "=[1575]/[0.6976039477]]<BR>\n" );
document.write( "=2257.72<BR>\n" );
document.write( "Total money paid in 15 years= 12*15*2257.72=$406,389.60<BR>\n" );
document.write( "Total interest paid = 406,389.60-236,250=$170,139.60<BR>\n" );
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document.write( "I haven't figured out the procedure on parts b and c yet.<BR>\n" );
document.write( "I suggest you post this again so others may have a look <BR>\n" );
document.write( "at it while I delve into b and c.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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