Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest:???
Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest:???
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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Use the following amortization chart:
| Selling price of home | Down payment | Principal (loan) | Rate of interest | Years | Payment per $1,000 | Monthly mortgage payment |
|---|---|---|---|---|---|---|
| $ 79,000 | $ 6,000 | $ 73,000 | 6% | 30 | $ 5.9955 | $ 437.67 |
Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1).
Note: Round your intermediate calculations and final answer to the nearest cent.
Total cost of interest:???
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Use the following amortization chart:
| Selling price of home | Down payment | Principal (loan) | Rate of interest | Years | Payment per $1,000 | Monthly mortgage payment |
|---|---|---|---|---|---|---|
| $ 79,000 | $ 6,000 | $ 73,000 | 6% | 30 | $ 5.9955 | $ 437.67 |
Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1).
Note: Round your intermediate calculations and final answer to the nearest cent.
Total cost of interest: ?????
The answer is NOT $110,753.57
TABLE 15.1
Amortization table (mortgage principal and interest per $1,000)
| Rate | Interest Only | 10 Year | 15 Year | 20 Year | 25 Year | 30 Year | 40 Year |
|---|---|---|---|---|---|---|---|
| 2.000 | 0.16667 | 9.20135 | 6.43509 | 5.05883 | 4.23854 | 3.69619 | 3.02826 |
| 2.125 | 0.17708 | 9.25743 | 6.49281 | 5.11825 | 4.29966 | 3.75902 | 3.09444 |
| 2.250 | 0.18750 | 9.31374 | 6.55085 | 5.17808 | 4.36131 | 3.82246 | 3.16142 |
| 2.375 | 0.19792 | 9.37026 | 6.60921 | 5.23834 | 4.42348 | 3.88653 | 3.22921 |
| 2.500 | 0.20833 | 9.42699 | 6.66789 | 5.29903 | 4.48617 | 3.95121 | 3.29778 |
| 2.625 | 0.21875 | 9.48394 | 6.72689 | 5.36014 | 4.54938 | 4.01651 | 3.36714 |
| 2.750 | 0.22917 | 9.54110 | 6.78622 | 5.42166 | 4.61311 | 4.08241 | 3.43728 |
| 2.875 | 0.23958 | 9.59848 | 6.84586 | 5.48361 | 4.67735 | 4.14892 | 3.50818 |
| 3.000 | 0.25000 | 9.65607 | 6.90582 | 5.54598 | 4.74211 | 4.21604 | 3.57984 |
| 3.125 | 0.26042 | 9.71388 | 6.96609 | 5.60876 | 4.80738 | 4.28375 | 3.65226 |
| 3.250 | 0.27083 | 9.77190 | 7.02669 | 5.67196 | 4.87316 | 4.35206 | 3.72541 |
| 3.375 | 0.28125 | 9.83014 | 7.08760 | 5.73557 | 4.93945 | 4.42096 | 3.79930 |
| 3.500 | 0.29167 | 9.88859 | 7.14883 | 5.79960 | 5.00624 | 4.49045 | 3.87391 |
| 3.625 | 0.30208 | 9.94725 | 7.21037 | 5.86404 | 5.07352 | 4.56051 | 3.94923 |
| 3.750 | 0.31250 | 10.00612 | 7.27222 | 5.92888 | 5.14131 | 4.63116 | 4.02526 |
| 3.875 | 0.32292 | 10.06521 | 7.33440 | 5.99414 | 5.20959 | 4.70237 | 4.10198 |
| 4.000 | 0.33333 | 10.12451 | 7.39688 | 6.05980 | 5.27837 | 4.77415 | 4.17938 |
| 4.125 | 0.34375 | 10.18403 | 7.45968 | 6.12587 | 5.34763 | 4.84650 | 4.25746 |
| 4.250 | 0.35417 | 10.24375 | 7.52278 | 6.19234 | 5.41738 | 4.91940 | 4.33620 |
| 4.375 | 0.36458 | 10.30369 | 7.58620 | 6.25922 | 5.48761 | 4.99285 | 4.41559 |
| 4.500 | 0.37500 | 10.36384 | 7.64993 | 6.32649 | 5.55832 | 5.06685 | 4.49563 |
| 4.625 | 0.38542 | 10.42420 | 7.71397 | 6.39417 | 5.62951 | 5.14140 | 4.57629 |
| 4.750 | 0.39583 | 10.48477 | 7.77832 | 6.46224 | 5.70117 | 5.21647 | 4.65758 |
| 4.875 | 0.40625 | 10.54556 | 7.84297 | 6.53070 | 5.77330 | 5.29208 | 4.73947 |
| 5.000 | 0.41667 | 10.60655 | 7.90794 | 6.59956 | 5.84590 | 5.36822 | 4.82197 |
| 5.125 | 0.42708 | 10.66776 | 7.97320 | 6.66881 | 5.91896 | 5.44487 | 4.90505 |
| 5.250 | 0.43750 | 10.72917 | 8.03878 | 6.73844 | 5.99248 | 5.52204 | 4.98870 |
| 5.375 | 0.44792 | 10.79079 | 8.10465 | 6.80847 | 6.06645 | 5.59971 | 5.07293 |
| 5.500 | 0.45833 | 10.85263 | 8.17083 | 6.87887 | 6.14087 | 5.67789 | 5.15770 |
| 5.625 | 0.46875 | 10.91467 | 8.23732 | 6.94966 | 6.21575 | 5.75656 | 5.24302 |
| 5.750 | 0.47917 | 10.97692 | 8.30410 | 7.02084 | 6.29106 | 5.83573 | 5.32888 |
| 5.875 | 0.48958 | 11.03938 | 8.37118 | 7.09238 | 6.36682 | 5.91538 | 5.41525 |
| 6.000 | 0.50000 | 11.10205 | 8.43857 | 7.16431 | 6.44301 | 5.99551 | 5.50214 |
| 6.125 | 0.51042 | 11.16493 | 8.50625 | 7.23661 | 6.51964 | 6.07611 | 5.58952 |
| 6.250 | 0.52083 | 11.22801 | 8.57423 | 7.30928 | 6.59669 | 6.15717 | 5.67740 |
| 6.375 | 0.53125 | 11.29130 | 8.64250 | 7.38232 | 6.67417 | 6.23870 | 5.76575 |
| 6.500 | 0.54167 | 11.35480 | 8.71107 | 7.45573 | 6.75207 | 6.32068 | 5.85457 |
| 6.625 | 0.55208 | 11.41850 | 8.77994 | 7.52950 | 6.83039 | 6.40311 | 5.94385 |
| 6.750 | 0.56250 | 11.48241 | 8.84909 | 7.60364 | 6.90912 | 6.48598 | 6.03357 |
| 6.875 | 0.57292 | 11.54653 | 8.91854 | 7.67814 | 6.98825 | 6.56929 | 6.12373 |
| 7.000 | 0.58333 | 11.61085 | 8.98828 | 7.75299 | 7.06779 | 6.65302 | 6.21431 |
| 7.125 | 0.59375 | 11.67537 | 9.05831 | 7.82820 | 7.14773 | 6.73719 | 6.30531 |
| 7.250 | 0.60417 | 11.74010 | 9.12863 | 7.90376 | 7.22807 | 6.82176 | 6.39672 |
| 7.375 | 0.61458 | 11.80504 | 9.19923 | 7.97967 | 7.30880 | 6.90675 | 6.48852 |
| 7.500 | 0.06250 | 11.87017 | 9.27101 | 8.05593 | 7.38991 | 6.99215 | 6.58071 |
| 7.625 | 0.63542 | 11.93552 | 9.34130 | 8.13254 | 7.47141 | 7.07794 | 6.67327 |
| 7.750 | 0.64583 | 12.00106 | 9.41276 | 8.20949 | 7.55329 | 7.16412 | 6.76620 |
| 7.875 | 0.65625 | 12.06681 | 9.48450 | 8.28677 | 7.63554 | 7.25069 | 6.85948 |
| 8.000 | 0.66667 | 12.13276 | 9.55652 | 8.36440 | 7.71816 | 7.33765 | 6.95312 |
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