Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment. $ (b) Find the amount that the Worthingtons borrowed from their bank. $ (c) Find the amount that the Worthingtons borrowed from the seller. $ (d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.) $ (e) Find the Worthingtons' monthly interest payment to the seller
Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim. (a) Find the Worthingtons' down payment. $ (b) Find the amount that the Worthingtons borrowed from their bank. $ (c) Find the amount that the Worthingtons borrowed from the seller. $ (d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.) $ (e) Find the Worthingtons' monthly interest payment to the seller
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 38P
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Jack and Laurie Worthington bought a house for $162,400. They put 10% down, borrowed 80% from their bank for thirty years at 12% interest, and convinced the owner to take a second mortgage for the remaining 10%. That 10% is due in full in five years, and the Worthingtons agree to make monthly interest-only payments to the seller at 12% simple interest in the interim.
(a) Find the Worthingtons' down payment.
$
(b) Find the amount that the Worthingtons borrowed from their bank.
$
(c) Find the amount that the Worthingtons borrowed from the seller.
$
(d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.)
$
(e) Find the Worthingtons' monthly interest payment to the seller.
$
(b) Find the amount that the Worthingtons borrowed from their bank.
$
(c) Find the amount that the Worthingtons borrowed from the seller.
$
(d) Find the Worthingtons' monthly payment to the bank. (Round your answer to the nearest cent.)
$
(e) Find the Worthingtons' monthly interest payment to the seller.
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