SOLUTION: A couple has decided to purchase a $190000 house using a down payment of $12000. They can amortize the balance at 9% over 20 years. a) What is their monthly payment? Answer = $

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Question 1201485: A couple has decided to purchase a $190000 house using a down payment of $12000. They can amortize the balance at 9% over 20 years.
a) What is their monthly payment?
Answer = $
b) What is the total interest paid?
Answer = $
c) What is the equity after 5 years?
Answer = $
d) What is the equity after 15 years?
Answer by mananth(16946) About Me  (Show Source):
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A couple has decided to purchase a $190000 house using a down payment of $12000. They can amortize the balance at 9% over 20 years.
a) What is their monthly payment?
Principal borrowed: $178000
Annual Interest Rate: 9%
Total Payments: 240
Monthly rate = (1+ annual rate)^(1/12)-1
=(1+0.09)^(1/12) -1
=0.00720732331
Monthly payment+A+=%28+P+%2A+i%29%2F%281-%281%2Bi%29%5E%28-n%29%29
A = monthly payment amount
P = loan amount 178,000
i = monthly interest rate 0.00720732331
n = total number of payments 240
Plug in the values
Answer = $ 1561.53
b) What is the total interest paid?
Answer = $ Total Interest Paid: $196767.20
c) What is the equity after 5 years?
Appraised value - balance payment
Answer = $
d) What is the equity after 15 years?