Problem 4 and 5-7 House Appreciation and Mortgage Payments

Say that you purchase a house for $302,000 by getting a mortgage for $265,000 and paying a $37,000 down payment. If you get a 25-year mortgage with a 8 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

PMT

$

What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)

PVA

$

If the house appreciates at 4 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

FV

$

How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Equity

$