Question
Clark and Lana take a 30-year home mortgage of $124,000 at 7.7%, compounded monthly. They make their regular monthly payments for 5 years, then decide
Clark and Lana take a 30-year home mortgage of $124,000 at 7.7%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1400 per month.
(a) Find their regular monthly payment. (Round your answer to the nearest cent.) (b) Find the unpaid balance when they begin paying the $1400. (Round your answer to the nearest cent.) $ (c) How many payments of $1400 will it take to pay off the loan? (Round your answer to two decimal places.) monthly payments (d) How much interest will they save by paying the loan using the number of payments from part (c)? (Round your answer to the nearest cent.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started