You plan to buy a $100,000 home using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. 1. Calculate your monthly payments on this mortgage. 2. Calculate the amount of interest and, separately, the principal paid in payment 25. 3. Calculate the amount of interest and, separately, the principal paid in payment 225. 4. Calculate the amount of interest paid over the life

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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1. You plan to buy a $100,000 home using a 30-year
mortgage obtained from your local credit union. The
mortgage rate offered to you is 8.25 percent. You will
make a down payment of 20 percent of the purchase price.
1. Calculate your monthly payments on this mortgage.
2. Calculate the amount of interest and, separately,
the principal paid in payment 25.
3. Calculate the amount of interest and, separately,
the principal paid in payment 225.
4. Calculate the amount of interest paid over the life
of this mortgage.
Transcribed Image Text:1. You plan to buy a $100,000 home using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. 1. Calculate your monthly payments on this mortgage. 2. Calculate the amount of interest and, separately, the principal paid in payment 25. 3. Calculate the amount of interest and, separately, the principal paid in payment 225. 4. Calculate the amount of interest paid over the life of this mortgage.
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