SOLUTION: Please, I need help on this equation.
You want to buy a $205,000 home. You plan to pay 20% as a down payment, and take out a 30 year fixed loan for the rest.
Round all answers
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-> SOLUTION: Please, I need help on this equation.
You want to buy a $205,000 home. You plan to pay 20% as a down payment, and take out a 30 year fixed loan for the rest.
Round all answers
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Question 1150238: Please, I need help on this equation.
You want to buy a $205,000 home. You plan to pay 20% as a down payment, and take out a 30 year fixed loan for the rest.
Round all answers to the nearest cent as needed.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be if the interest rate is 5.7%?
$
c) What will your monthly payments be if the interest rate is 6.7%?
$
what you need to do is:
divide the yearly interest rate percent by 12 to get the monthly interest rate percent.
multiply the number of years by 12 to get the number of months.
5.7% per year / 12 = .475% per month.
6.7% per year / 12 = .5583333333% per month.
30 years * 1 2 = 360 months.
your present value is set to 205,000 minus 20% of 205000 = 164,000.
your future value is set to 0.
your payments are made at the end of each time period.
inputs at 5.7% per year are shown below:
output at 5.7% per year is shown below:
inputs at 6.7% per year are shown below:
output at 6.7% per year is showon below:
the present value is positive because it's money received.
the payment is negative because it's money spent.
your loan amount is $164,000.
your payments at the end of each month at 5.7% per year are $951.86.
your payments at the end of each month at 6.7% per year are $1058.66.
