# The problem describes a debt to be amortized. (Round your answers to the nearest cent.)A man buys a house for \$310,000. He makes a \$150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 13 years. The interest rate on thedebt is 12%, compounded semiannually.(a) Find the size of each payment.\$(b) Find the total amount paid for the purchase.\$(c) Find the total interest paid over the life of the loan.

Question
3 views
check_circle

Step 1

A man buys a house for \$ 310,000. He makes a \$150,000 down payment and amortize the rest of the purchase price with semiannual payments over the next 13 years. The interest rate on the debt is 12%, compounded semiannually.

1. Find the size of each payment
2. Find the total amount paid for this purchase.
3. Find the total interest paid over the life of the loan
Step 2

Given

P=\$310,000

Down payment= \$150,000

Payment remaining= 310,000-150,000

=\$160,000

Now remaining payment he will pay in 13 years

Step 3

Total amount to be paid ...

### Want to see the full answer?

See Solution

#### Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in