Question
Please Help me with all 3 questions please. I really need these. I promise I will give a thumbs up Amortization *Background info* Suppose you
Please Help me with all 3 questions please. I really need these. I promise I will give a thumbs up
Amortization *Background info*
Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly).
Amortization Revisit *New additional info*
Suppose you decide to wait 5 years to save up before buying the house. You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank. Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments.
Answer the following questions about this loan.
- How much is the monthly payment? Round to the nearest cent. _____________________
- After making 240 monthly payments, how much will you have paid in total to the bank? Round to the nearest cent. __________________________
- After making 240 monthly payments, how much of what you paid the bank was interest? Round to the nearest cent. ____________________________
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