6. You want to purchase a house that is priced at $$5,000. You can get a loan for 80 percent of the bank's appraised value at 15.25% interest per year for 30 years with monthly amortization. The bank's appraiser has a theory that the value of a house is 95 percent of the asking price and appraises it accordingly. What will be your monthly payment if you take the loan?

Appraised Price = 0.95*85000 = 80750

Loan = 64600 Rate = 15%/12 N=360 FV=0 Monthly payments = 829.75

7. What would be the balance on the mortgage in Problem #6 after 5 years?

8. Complete the following table for the loan in Problem #6: Year year 1 2 3 4 5 Balance at end of year Principal repaid during year Total of annual loan payments Interest paid during the year

6. You want to purchase a house that is priced at $85,000. You can get a loan for 30 percent of the bank's appraised value at 15.25% interest per year for 30 years with monthly amortization. The bank's appraiser has a theory that the value of a house is 95 percent of the asking price and appraises it accordingly. What will be your monthly payment if you take the loan? AppraisedPrice=0.9585000=80750Loan=64600Rate=15%/12N=360FV=0Monthlypayments=829.75 7. What would be the balance on the mortgage in Problem \pm 6 after 5 years? 8. Complete the following table for the loan in Problem #6 : Year 6. You want to purchase a house that is priced at $85,000. You can get a loan for 30 percent of the bank's appraised value at 15.25% interest per year for 30 years with monthly amortization. The bank's appraiser has a theory that the value of a house is 95 percent of the asking price and appraises it accordingly. What will be your monthly payment if you take the loan? AppraisedPrice=0.9585000=80750Loan=64600Rate=15%/12N=360FV=0Monthlypayments=829.75 7. What would be the balance on the mortgage in Problem \pm 6 after 5 years? 8. Complete the following table for the loan in Problem #6 : Year