A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and make payments of $403.22. After 4 years, they are able to make a one-time payment of $2000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2000 and their 48th payment. (Round your answer to the nearest cent.) $ (b) How many regular payments of $403.22 will amortize the unpaid balance from part (a)? (Round your answer to the nearest whole number.) payments (c) How much will the couple save over the life of the loan by paying the extra $2000? (Use your answer from part (b). Round your answer to the nearest cent.) $
A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and make payments of $403.22. After 4 years, they are able to make a one-time payment of $2000 along with their 48th payment. (a) Find the unpaid balance immediately after they pay the extra $2000 and their 48th payment. (Round your answer to the nearest cent.) $ (b) How many regular payments of $403.22 will amortize the unpaid balance from part (a)? (Round your answer to the nearest whole number.) payments (c) How much will the couple save over the life of the loan by paying the extra $2000? (Use your answer from part (b). Round your answer to the nearest cent.) $
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.19E
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Question
A young couple buying their first home borrow $60,000 for 30 years at 7.1%, compounded monthly, and make payments of $403.22. After 4 years, they are able to make a one-time payment of $2000 along with their 48th payment.
(a) Find the unpaid balance immediately after they pay the extra $2000 and their 48th payment. (Round your answer to the nearest cent.)
$
(b) How many regular payments of $403.22 will amortize the unpaid balance from part (a)? (Round your answer to the nearest whole number.)
payments
(c) How much will the couple save over the life of the loan by paying the extra $2000? (Use your answer from part (b). Round your answer to the nearest cent.)
$
$
(b) How many regular payments of $403.22 will amortize the unpaid balance from part (a)? (Round your answer to the nearest whole number.)
payments
(c) How much will the couple save over the life of the loan by paying the extra $2000? (Use your answer from part (b). Round your answer to the nearest cent.)
$
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