Concept explainers
Principal loan, Payment per $1000 and Monthly mortgage payment for 25years. If, selling price of home is $140,000, down payment is $10,000, at 3.5% interest rate.
Answer to Problem 1ECP
Monthly mortgage payment is
Payment per $1000 is
Principal loan is.
Explanation of Solution
Formula used:
Amount of mortgage is calculated as,
Monthly payment is calculated as,
Calculation:
Given that, Total cost is $140,000 and down payment is $10,000.
Substitute,
Hence, Principal loan is
Use Table 15.1 and obtain the payment per $1000 for Interest rate is 3.5% and time period is 25 years as $5.01.
Hence, Payment per $1000 is
Substitute,
Hence, Monthly mortgage payment is
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Chapter 15 Solutions
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