You need a 30 year fixed rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6% APR for a 360 month loan. You can only afford a monthly payment of $1000. How much down payment should you put at the time of purchase? Please show work.
You need a 30 year fixed rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6% APR for a 360 month loan. You can only afford a monthly payment of $1000. How much down payment should you put at the time of purchase? Please show work.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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You need a 30 year fixed rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6% APR for a 360 month loan. You can only afford a monthly payment of $1000. How much down payment should you put at the time of purchase? Please show work.
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