Question
Chandler and Monica Bing wish to buy a new home. The listing price is $387,500 and they plan to put 20% down. New Rochelle Savings
Chandler and Monica Bing wish to buy a new home. The listing price is $387,500 and they plan to put 20% down. New Rochelle Savings and Loan will lend them the remainder at a 9% fixed APR for 30 years, with monthly payments to begin in one month. For simplicity, lets ignore closing costs and taxes when solving this question.
c 1). Suppose they chose the 30-year plan and 20 years have passed since the loan started. They have made the past 240 payments exactly on time. What is the remaining balance on their loan now?
c 2). Chandler and Monicas rich actor friend Joey decides to help them pay a lump sum $100,000 on their remaining balance. After the help from this generous friend, what is their remaining balance at year 20?
c 3). If Chandler and Monica decide to make equal monthly payment for the 10 years left for the remaining balance after this generous help from Joey, what will their monthly payment be?
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