Question
Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 94,000
Use the following amortization chart:
| Selling price of home | Down payment | Principal (loan) | Rate of interest | Years | Payment per $1,000 | Monthly mortgage payment | ||||
| $ 94,000 | $ 4,000 | $ 90,000 | 5% | 30 | $ 5.37 | $ 483.30 | ||||
Assume the interest rate rises to 6.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1.) (Do not round intermediate calculations. Round your final answer to the nearest cent.)
LINK FOR 15.1 TABLE: https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/Slater_13e/table_15.1.jpg
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
