a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much total interest do you pay?

Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 34P: You want to accumulate $1 million by your retirement date, which is 25 years from now. You will make...
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You want to buy a $255,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan at 6.3% interest for the rest.

a) How much is the loan amount going to be?



b) What will your monthly payments be?



c) How much total interest do you pay?



d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?



e) How much money in interest will you save if you finance for 15 years instead of 30 years?

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