SOLUTION: Annuity problems have really been giving me a problem lately and we've been moving through this particular chapter rather quickly. A man buys a house for $95,000. He makes a $15,00
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Question 86594: Annuity problems have really been giving me a problem lately and we've been moving through this particular chapter rather quickly. A man buys a house for $95,000. He makes a $15,000 down payment and amortizes the rest of the debt with monthly payments over the next 15 years. The interst rate on the debt is 12%, compound monthly. Find the size of each payment.
I'm pretty sure I use the An=R[1-(1+i)^n all divided by i
R=15,000
i= .12 or 12% /(12)
n= 15
This is what I'm guessing but I'm really not sure. Please help me if you can!!!!!!! Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! I think I answered this for you.
Your interpretation of your formula seems incorrect.
R is not the down payment.
n is not 15
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Cheers,
Stan H.
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