Suppose you decide to wait 5 years to save up before buying the house.  You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank.  Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter2: Solving Linear Equations
Section2.2: Use A Problem Solving Strategy
Problem 2.53TI: Eduardo noticed that his new car loan papers stated that with a 7.5% simple interest rate, he would...
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Suppose you decide to wait 5 years to save up before buying the house.  You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank.  Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments.The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly).

 

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