Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the amount saved on interest over the life of the loan. Assume the mortgage is for 30 years and use the amortization table to find the monthly payments. Increase in Amount of Loan Interest Rate Down Payment Down payment $237,000 10% $52,000 $23,000 Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payment will be reduced by $ when the down payment is increased by $23,000. (Round to the nearest cent as noodod)
Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate (a) the reduction in the monthly payment by increasing the down payment by the amount specified, and (b) the amount saved on interest over the life of the loan. Assume the mortgage is for 30 years and use the amortization table to find the monthly payments. Increase in Amount of Loan Interest Rate Down Payment Down payment $237,000 10% $52,000 $23,000 Click the icon to view a table of monthly payments on a $1,000 loan. a. The monthly payment will be reduced by $ when the down payment is increased by $23,000. (Round to the nearest cent as noodod)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:O Monthly Payment on a $1,000 loan
Number of Years for the Loan
Annual Interest Rate
3
4
10
20
30
4%
$29.53
$22.58
$10.12
$6.06
$4.77
5%
29.97
23.03
10.61
6.60
5.37
6%
30.42
23.49
11.10
7.16
6.00
8%
31.34
24.41
12.13
8.36
7.34
10%
32.27
25.36
13.22
9.65
8.78
12%
33.21
26.33
14.35
11.01
10.29
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Transcribed Image Text:Increasing the down payment on a mortgage reduces both the size of the monthly payments and
the total interest paid. Calculate (a) the reduction in the monthly payment by increasing the down
payment by the amount specified, and (b) the amount saved on interest over the life of the loan.
Assume the mortgage is for 30 years and use the amortization table to find the monthly payments.
Increase in
Amount of Loan Interest Rate
Down Payment Down payment
$237,000
10%
$52,000
$23,000
Click the icon to view a table of monthly payments on a $1,000 loan.
a. The monthly payment will be reduced by $ when the down payment is increased by $23,000.
(Round to the nearest cent as needed.)
Enter your answer in the answer box and then click Check Answer.
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