Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the remainder for 15 years at the APR of 8.2%, compounded monthly. a) How large are the monthly payments? $ b) What will be their loan balance right after they have made their 156th payment? $ c) How much interest will they pay during the 13th year of the loan? $ d) If they were to increase their montly payments by $120, how long would it take to pay off the loan? Give your answer in whole months.
Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the remainder for 15 years at the APR of 8.2%, compounded monthly. a) How large are the monthly payments? $ b) What will be their loan balance right after they have made their 156th payment? $ c) How much interest will they pay during the 13th year of the loan? $ d) If they were to increase their montly payments by $120, how long would it take to pay off the loan? Give your answer in whole months.
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Transcribed Image Text:Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the
remainder for 15 years at the APR of 8.2%, compounded monthly.
a) How large are the monthly payments? $
b) What will be their loan balance right after they have made their 156th payment? $
c) How much interest will they pay during the 13th year of the loan? $
d) If they were to increase their montly payments by $120, how long would it take to pay off the
loan? Give your answer in whole months.
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