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.

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Asked Dec 4, 2019
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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 the
debt 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.
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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 the debt 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.

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Expert Answer

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

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160000 Amount to be paid per year : 13 =$12307.69 12 Interest per year =12307.69 1+ 100 -12307.69 = $1521.2304 Size of each payment = 12307.69 +1521.2304 =$13828.92

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Step 3

Total amount to be paid ...

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13 x13828.92+150,000 Size of each payment = $329775.96

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