Betty Price purchased a new home for $265,000 with a 20% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
Betty Price purchased a new home for $265,000 with a 20% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Betty Price purchased a new home for $265,000 with a 20% down payment and the remainder amortized over a 15 year period at 9% interest.
(a)
What amount (in $) did Betty finance?
$
(b)
What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.)
$
(c)
What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.)
$
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