Please19 show work The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remainder witha 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly.a) Find the Hogansons' monthly mortgage payment.b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments.c) How much interest do the Hogansons pay?What is the correct formula for this situation?ct· ²(1+yª. [(1+1)ª-,)OA. P 1.OB. A=-1 +cta) The Hogansons' monthly mortgage payment is $(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not includethe $ symbol in your answer.)b) The total of the Hogansons' payments is $(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not includethe $ symbol in your answer.)c) The Hogansons pay $ in interest.(Simplify your answer. Do not round until the final answer. Then round to two decimal places as needed. Do not includethe $ symbol in your answer.)

Loans are paid by equal fixed monthly payments that carry the payment for interest and loan both.

The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remain a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly. a) Find the Hogansons' monthly mortgage payment. b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments. c) How much interest do the Hogansons pay? What is the correct formula for this situation? [ ict 1 ¡\ ct 1

The Hogansons purchase a new home for $225,000. They make a 25% down payment and finance the remain a 20-yr mortgage at an annual interest rate of 6.4%, compounded monthly. a) Find the Hogansons' monthly mortgage payment. b) Assume that the Hogansons make every payment for the life of the loan. Find their total payments. c) How much interest do the Hogansons pay? What is the correct formula for this situation? [ ict 1 ¡\ ct 1

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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