Explanation In problem 30, a house sells for $182,500 and a 5% down payment is made. A mortgage is secured at 7% for 15 years. The down payment, 5% of 182,500 is 0.05 × 182 , 500 = $ 9 , 125 . Subtract the down payment from the cost of the home to get the principal as $ 182 , 500 − $ 9 , 125 = $ 173 , 375 . Dividing this amount by 1000 will be $173.37. From the Table 8-2, the value for a 15 year mortgage at 7% is 8.99. To find the monthly payment, multiply 8.99 with $173.37 and it is equal to $1,558.64. The mortgage was secured for 15 years. Each year has 12 months. So, the total payment is $ 1 , 558.64 × 12 × 15 = $ 2 , 80 , 555.2 . The amount of mortgage is $173,375. Then, the interest paid is $ 2 , 80 , 555.2 − $ 173 , 375 = $ 107 , 180

3rd Edition

ISBN: 9780073519678

Author: David Sobecki Professor, Allan G. Bluman

Publisher: McGraw-Hill Education

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Chapter 8.5, Problem 38E

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To find: The monthly payment on the loan in problem 30 if the term is increased to 30 years and to find the extra interest will be paid.

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Chapter 8.5, Problem 37E

Chapter 8.5, Problem 39E

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The monthly payment on the loan in problem 30 if the term is increased to 30 years and to find the extra interest will be paid.

Solution Summary: The author calculates the monthly payment on the loan in problem 30 if the term is increased to 30 years and the extra interest will be paid.

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To find: The monthly payment on the loan in problem 30 if the term is increased to 30 years and to find the extra interest will be paid.

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Chapter 8 Solutions