Question
A man buys a house for $330,000. He makes a $160,000 down payment and amortizes the rest of the purchase price with semiannual payments over
A man buys a house for $330,000. He makes a $160,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 5 years. The interest rate on the debt is 12%, compounded semiannually.
(a) Find the size of each payment.
$
(b) Find the total amount paid for the purchase.
$
(c) Find the total interest paid over the life of the loan.
$
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
