You want to buy a $142,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at6.1% interest for the rest.a) How much is the loan amount going to be?$b) What will your monthly payments be?c) How much total interest do you pay?d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?e) How much money in interest will you save if you finance for 15 years instead of 30 years?Submit Question

Loan Payments: These are payments comprising interest & principal amounts. Such payments are…

Answered: a) How much is the loan amount going to…

a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much total interest do you pay?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Question

You want to buy a $142,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at
6.1% interest for the rest.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be?
c) How much total interest do you pay?
d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?
e) How much money in interest will you save if you finance for 15 years instead of 30 years?
Submit Question

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