Question
You can afford payments of $700 per month for the purchase of a house. a) What is the largest amount you can finance for this
You can afford payments of $700 per month for the purchase of a house.
a) What is the largest amount you can finance for this house at 3.2% APR for 30 years? (Round to the nearest dollar.) $
b) How much total will you pay the finance company at the end of the 30 years for this house if you are paying $700 per month for thirty years? $
c) Now you are curious what the payments would be if you financed the same amount for a house as in part (a) at 3.2% APR for 20 years instead of 30 years. How much would those monthly payments be if you financed the amount you calculated in part (a) at 3.2% APR for 20 years? (Round to the nearest dollar.) $
d) Using the payments from part (c), how much total will you pay the finance company at the end of 20 years? $
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