Suppose you decide to wait 5 years to save up before buying the house.  You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank.  Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments. Answer the following questions about this loan. After making 240 monthly payments, how much will you have paid in total to the bank?

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 21E
icon
Related questions
Question

Amortization Revisit

Suppose you decide to wait 5 years to save up before buying the house.  You are able to put a down payment of $30,000 on the house, so that you only need to borrow $170,000 from the bank.  Assume the interest rate is still the same, but you are now in a better financial position, and you can pay off the loan in 240 equal monthly payments.

Answer the following questions about this loan.

After making 240 monthly payments, how much will you have paid in total to the bank?

$                      .  Round to the nearest cent.

Thanks!

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning