The type of problems that I'm working on this worksheet is related to fiance and loan payments for both housing and student loans, below are the problems.

MAT144 Section 4.5: Payout Annuity - Additional Practice 1. You acquire a $15000 unsubsidized student loan at 4.3% interest. You will graduate A years later. How much simple interest accumulates while you in still in school for an unsubsidized loan? a. b. If you capitalized the loan, what will be the balance when you graduate? C. After you graduate, you will begin making payments on your loan at 6.8% compounded monthly years. What is the monthly payment for this loan? d. How much interest will be paid for this loan? e. Suppose that you decide not to capitalize the loan. What is the payment for this loan if it is monthly at 6.8% for 10 years? f. How much interest will you pay if the loan is not capitalized? Be careful here. g. What is the savings if you choose not capitalized over the capitalized loan? 2. Nick is purchasing a condominium that he plans to rent. He negotiated a price of $85,000 and the bank is requiring a 30% down payment. The balance is financed with a 30-year fixed-rate mortgage at 3.95%. Find the required down payment. 30% = 0.30 85,000 0.30 = 8a500 a b. Find the amount of the loan. 85,000 - as, soo = 595,000 C. Find the monthly payment for the loan. pmt = 395000 (0-039 12 + = 30 year n = 12 r= 3.95 = 0.0395 PV = 5595,000 $2,823.50 1-C1 + 0.0395)-1200) 12 aga3.80 - 1a - 30 = 111016460 d. Find the total interest paid over 30 years. 1016460 85000 - 931,460 e. Nick is going to rent his condominium and wants the tenant to pay the mortgage payment. He would also like to add a little more to the payment to cover damages. How much will he have to add to the monthly payment so that he will make $1,500 additional per year from this rental? (He is not earning interest on this money.) What is the total amount he should charge for rent? f. Make an amortization schedule for the first 3 months. APR: 3,95 % Amount of Loan: $ 595.000 Monthly Payment Amount $ 2,923.50 Number of Monthly Payments: 125 Payment Number Total Payment Interest Payment Principal Payment Balance of Loan 1 2 3 page 2 MAT144 Section 4.5: Payout Annuity - Additional Practice 1. You acquire a $15000 unsubsidized student loan at 4.3% interest. You will graduate A years later. How much simple interest accumulates while you in still in school for an unsubsidized loan? a. b. If you capitalized the loan, what will be the balance when you graduate? C. After you graduate, you will begin making payments on your loan at 6.8% compounded monthly years. What is the monthly payment for this loan? d. How much interest will be paid for this loan? e. Suppose that you decide not to capitalize the loan. What is the payment for this loan if it is monthly at 6.8% for 10 years? f. How much interest will you pay if the loan is not capitalized? Be careful here. g. What is the savings if you choose not capitalized over the capitalized loan? 2. Nick is purchasing a condominium that he plans to rent. He negotiated a price of $85,000 and the bank is requiring a 30% down payment. The balance is financed with a 30-year fixed-rate mortgage at 3.95%. Find the required down payment. 30% = 0.30 85,000 0.30 = 8a500 a b. Find the amount of the loan. 85,000 - as, soo = 595,000 C. Find the monthly payment for the loan. pmt = 395000 (0-039 12 + = 30 year n = 12 r= 3.95 = 0.0395 PV = 5595,000 $2,823.50 1-C1 + 0.0395)-1200) 12 aga3.80 - 1a - 30 = 111016460 d. Find the total interest paid over 30 years. 1016460 85000 - 931,460 e. Nick is going to rent his condominium and wants the tenant to pay the mortgage payment. He would also like to add a little more to the payment to cover damages. How much will he have to add to the monthly payment so that he will make $1,500 additional per year from this rental? (He is not earning interest on this money.) What is the total amount he should charge for rent? f. Make an amortization schedule for the first 3 months. APR: 3,95 % Amount of Loan: $ 595.000 Monthly Payment Amount $ 2,923.50 Number of Monthly Payments: 125 Payment Number Total Payment Interest Payment Principal Payment Balance of Loan 1 2 3 page 2