Problem 4 and 5-8 House Appreciation and Mortgage Payments

Say that you purchase a house for $174,000 by getting a mortgage for $155,000 and paying a $19,000 down payment. If you get a 15-year mortgage with a 6 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 five years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

PVA

$

If the house appreciates at 3 percent per year, what will be the value of the house in five 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

$