The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs. The Bainters want to know how much they would pay on their loan each year as well as how much they would

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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The cost to purchase the house that Bainters are considering is $195,000 but the Bainters plan to make a $40,000 down payment. The Bainters have been approved for a fixed-rate, 30-year mortgage with a 4.2% annual interest rate for the remaining costs.

The Bainters want to know how much they would pay on their loan each year as well as how much they would pay on their loan after 5 years, 10 years, 15 years, and 30 years. They also want to determine how much they would pay in interest on their loan when they repay the entire loan.
 
What are the amounts?
 
Your answer should include (remember to show or explain your calculations)
  • the total amount paid in loan payments after 1 year
  • the total amount paid in loan payments after 5 years
  • the total amount paid in loan payments after 10 years
  • the total amount paid in loan payments after 15 years
  • the total amount paid in loan payments after 30 years
  • the total amount of interest paid on the loan when it is repaid
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Follow-up Question

195,000-40,000 is 155,000 

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