Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance using a 30-year, 9 % per annum compounded monthly conventional loan. a) How much were his monthly payments? b) If he sold the house for $700,000 after 6 years, how much equity did he have in the house? c) How much is his contribution to his loan (Principal and Interest)?
Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance using a 30-year, 9 % per annum compounded monthly conventional loan. a) How much were his monthly payments? b) If he sold the house for $700,000 after 6 years, how much equity did he have in the house? c) How much is his contribution to his loan (Principal and Interest)?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Nate agreed to pay $550,000 for a house. He made a $125,000 down payment and financed the balance using a 30-year, 9 % per annum compounded monthly conventional loan.
a) How much were his monthly payments?
b) If he sold the house for $700,000 after 6 years, how much equity did he have in the house?
c) How much is his contribution to his loan (Principal and Interest)?
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT