Question

Asked Nov 7, 2019

3 views

Jake just got a

$96000

mortgage in order to buy a new home, and he was able to get a 30 year loan at 5.5% interest. Answer the following questions about Jake's loan.(Round your answers to the nearest cent.)

What is Jake's monthly payment?

$nothing

How will Jake pay in total over the lifetime of the loan?

$nothing

How much interest will Jake pay over the lifetime of the loan?

$

Step 1

Loan Amount (pv) = $96,000

Interest Rate (rate) = 5.5%

Time Period = 30 Years

Number of Payments in a Year = 12

Total Number of Payments (nper) = 30 Years × 12 = 360

Calculation of Monthly Payment of the loan by using PMT function of excel:

To open the "PMT function" window - MS-Excel --> Formulas --> Financials --> PMT.

Step 2

Monthly Payment = $545.08

Time Period = 30 Years

Number of Payments in a Year = 12

Total Number of Payments = 30 Years × 12 = 360

Calculation of the future value of the loan is as follows

Step 3

Loan Amount = $96,000

Future Value of the Loan = $196.228.80

Calculation of th...

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