d. How much interest will they have paid? e. How many of the monthly payments go towards the interest?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 57SE: Karl has two years to save $10000 to buy a used car when he graduates. To the nearest dollar, what...
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d. How much interest will they have paid?

e. How many of the monthly payments go towards the interest?

f. What percent increase over the cost of the home does this interest represent?

The following formula is used for figuring out a monthly home mortgage
payment:
7(12t)
r
Lr1+
12
M =
12t
12
1+
12
-1
Where:
L = the loan amount in dollars
the annual interest rate expressed as decimal
t = the number of years of the loan
M= the monthly payment in dollars
r =
You are looking to buy a $275,599.00 home in Haverhill. If Bank of
America will give them a 30-year mortgage at 6.75% annual interest rate for
the cost of the house after they receive a 10% down payment.
D. How much interest will they have paid?
E. How many of her monthly payment go toward the interest?
F. What percent increase over the cost of the home does this interest
represent?
Transcribed Image Text:The following formula is used for figuring out a monthly home mortgage payment: 7(12t) r Lr1+ 12 M = 12t 12 1+ 12 -1 Where: L = the loan amount in dollars the annual interest rate expressed as decimal t = the number of years of the loan M= the monthly payment in dollars r = You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year mortgage at 6.75% annual interest rate for the cost of the house after they receive a 10% down payment. D. How much interest will they have paid? E. How many of her monthly payment go toward the interest? F. What percent increase over the cost of the home does this interest represent?
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