ou purchase a home for $525,000 by taking out a standard mortgage at 3.3% interest compounded monthly, for 30 years. To avoid other fees and higher interest, you pay 10% of the purchase price right now (and thereby reduce the amount you finance). d) How much have you paid in total over these 16 years? e) How much have you paid in interest over these 16 years?
ou purchase a home for $525,000 by taking out a standard mortgage at 3.3% interest compounded monthly, for 30 years. To avoid other fees and higher interest, you pay 10% of the purchase price right now (and thereby reduce the amount you finance). d) How much have you paid in total over these 16 years? e) How much have you paid in interest over these 16 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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You purchase a home for $525,000 by taking out a standard mortgage at 3.3% interest
compounded monthly, for 30 years. To avoid other fees and higher interest, you pay 10% of
the purchase price right now (and thereby reduce the amount you finance).
d) How much have you paid in total over these 16 years?
e) How much have you paid in interest over these 16 years?
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