document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1121990>Question 1121990</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You want to buy a $245,000 home. You plan to pay 15% as a down payment, and take out a 30 year fixed loan for the rest. <BR>\n" );
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document.write( "a) How much is the loan amount going to be? <BR>\n" );
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document.write( "b) What will your monthly payments be if the interest rate is 6.2%? <BR>\n" );
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document.write( "c) What will your monthly payments be if the interest rate is 7.2%? <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #738240 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=738240\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You want to buy a $245,000 home. You plan to pay 15% as a down payment, and take out a 30 year fixed loan for the rest. <BR>\n" );
document.write( "Round all answers to the nearest cent as needed. <BR>\n" );
document.write( "a) How much is the loan amount going to be? <BR>\n" );
document.write( "b) What will your monthly payments be if the interest rate is 6.2%? <BR>\n" );
document.write( "c) What will your monthly payments be if the interest rate is 7.2%? \r<BR>\n" );
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document.write( "use the following calculator.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "15% down payment = .15 * 245,000 = 36,750.<BR>\n" );
document.write( "subtract that from 245,000 and your mortgage loan needs to be 208,250.\r<BR>\n" );
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document.write( "for the first part, your inputs will be:\r<BR>\n" );
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document.write( "present value = 208,250<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of time periods = 30 * 12 = 360<BR>\n" );
document.write( "interest rate per time period = 6.2/12 = .51666666666.....%<BR>\n" );
document.write( "payments are to be made at the end of each time period.\r<BR>\n" );
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document.write( "click on PMT and the calculator tells you that the monthly payment will be <BR>\n" );
document.write( "-1275.47\r<BR>\n" );
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document.write( "the present value is positive because it's money you receive.<BR>\n" );
document.write( "the payment is negative because it's money you pay out.\r<BR>\n" );
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document.write( "your monthly payments will be 1275.47.\r<BR>\n" );
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document.write( "here's a display of what the calculator shows.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/083103.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "for the second part, everything will be the same except the interest rate per time period will be 7.2 / 12 = .6\r<BR>\n" );
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document.write( "click on PMT and the calculator tells you that the monthly payment will be -1413.58\r<BR>\n" );
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document.write( "the payment is negative because it's money you pay out.\r<BR>\n" );
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document.write( "here's a display of what the calculator shows.\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/083104.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "you should not have to do this manually using formulas, but if you do, here's a reference on the most commonly used formulas.\r<BR>\n" );
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document.write( "if you try ehse formulas out, you should be able to duplicate the results from the use of this calculator, which is also referenced in the tutorial.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes\" target = \"_blank\">https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes</a>\r<BR>\n" );
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