SOLUTION: you want to buy a $205,000 home you plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) how much is the loan amount going to be b) what will you

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: you want to buy a $205,000 home you plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) how much is the loan amount going to be b) what will you       Log On


   

Question 1203926: you want to buy a $205,000 home you plan to pay 15% as a down payment, and take out a 30 year loan for the rest. a) how much is the loan amount going to be b) what will you monthly payments be if the interest rate is 5% c)what will you monthly payments be if the interest rate is 6%
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!
a) how much is the loan amount going to be
205000+-205000%2A0.15=174250

b) what will you monthly payments be if the interest rate is 5%
use the formula
M=%28P%2Ai%29%2F%281-%281%2Bi%29%5E%28-n%29%29 where
+M+is monthly payment
P is loan amount
i is monthly interest (annual divided by 12)
n is number of payments (30 years=30%2A12=360 months)

P=174250
i=+5%2F12% =0.05%2F12
n=360
M=%28174250%280.05%2F12%29%29%2F%281-%281%2B0.05%2F12%29%5E-360%29+
M=935.41
Loan payment is $935.41 for 360 payments at 5%.


c)what will you monthly payments be if the interest rate is 6%
M=%28174250%280.06%2F12%29%29%2F%281-%281%2B0.06%2F12%29%5E-360%29+
M=1044.72
Loan payment is $1044.72 for 360 payments at 6%