Question
A newly married couple would like to purchase a house worth $370,000. They can afford to make a down payment of $70,000 and need to
A newly married couple would like to purchase a house worth $370,000. They can afford to make a down payment of $70,000 and need to take out a mortgage. The bank offers them a 30-year mortgage with monthly payments at 8% APR with quarterly compounding.Their monthly payments are (i)__________________. However, they can only afford to make payments of $2000 per month. The bank agrees to this on the condition that they pay the remaining amount in a lump sum fashion at the end of 30 years. Thus, the couple will have to pay a lump sum amount of (ii)_____________at the end of 30 years.
Select one:
a.(i) $2,845.67;(ii) $24,028. 02
b.(i) $2,190.34 ;(ii) $280,682. 73
c.(i) $2,254. 13 ;(ii) $252,766. 15
d.(i) $2,701.43 ;(ii)$26,070.54
e.(i) $2,200.94 ;(ii)$139, 426.37
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