4. Jack and Jill have found a hill they would like to buy. They can buy the hill for $229 000. In talking with the bank, they have been offered a mortgage for 85% of the cost (meaning they need a 15% down payment) at 6.2% compounded monthly, with regular weekly payments for 15 years. PV:8 229,000-34,350 RATE: 6.2 PERIOD: 180 FV: Compounding: Monthy a) How much will the down payment be? (15% down 229,000 X0.15 PMT: y 34,350 b) How much will the principal of the mortgage be? 15.1.- down payment 851.- mortgage Period (15) (12) = 180 payment) $ 34,350

4. Jack and Jill have found a hill they would like to buy. They can buy the hill for $229 000. In talking with the bank, they have been offered a mortgage for 85% of the cost (meaning they need a 15% down payment) at 6.2% compounded monthly, with regular weekly payments for 15 years. PV:8 229,000-34,350 RATE: 6.2 PERIOD: 180 FV: Compounding: Monthy a) How much will the down payment be? (15% down 229,000 X0.15 PMT: y 34,350 b) How much will the principal of the mortgage be? 15.1.- down payment 851.- mortgage Period (15) (12) = 180 payment) $ 34,350

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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