A young couple buying their first home borrow $70,000 for 30 years at 7.8%, compounded monthly, and make payments of $503.91. After 5 years, they are able to make a one-time payment of $2000 along with their 60th payment. (a) Find the unpaid balance immediately after they pay the extra $2000 and their 60th payment. (Round your answer to the nearest cent.) $ (b) How many regular payments of $503.91 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 $70,000 for 30 years at 7.8%, compounded monthly, and make payments of $503.91. After 5 years, they are able to make a one-time payment of $2000 along with their 60th payment. (a) Find the unpaid balance immediately after they pay the extra $2000 and their 60th payment. (Round your answer to the nearest cent.) $ (b) How many regular payments of $503.91 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.)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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Question
A young couple buying their first home borrow $70,000 for 30 years at 7.8%, compounded monthly, and make payments of $503.91. After 5 years, they are able to make a one-time payment of $2000 along with their 60th payment.
(a) Find the unpaid balance immediately after they pay the extra $2000 and their 60th payment. (Round your answer to the nearest cent.)
$
(b) How many regular payments of $503.91 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 $503.91 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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