14) To purchase studio space, on April 3, 2025 a pianist takes out a 30-year loan...

70.2K

Verified Solution

Question

Basic Math

14) To purchase studio space, on April 3, 2025 a pianist takesout a 30-year loan of $120,000 at an annual interest rate of 11%.The first monthly payment is to be made on May 3, 2025; the finalpayment is scheduled to be made April 3, 2055. The monthly paymentis $1,142.79 . [Note: If you use the table you’ll get that themonthly payment is $1,142.40, but the table produces anapproximation. $1,142.79 is the precise payment.]
a) Calculate the total interest charged over the course of theloan, assuming that nothing but the standard payment is made eachmonth.
b) How much will she owe immediately after making the payment onJune 3, 2025? (= the second payment) Round appropriately to thenearest penny.
c) Suppose that as part of that June 3, 2025 payment she pays anextra $300 as an overpayment. Calculate the dollar amount ofinterest which this saves in the future. Round your answer down tothe nearest $10.

Answer & Explanation Solved by verified expert

3.8 Ratings (667 Votes)

Since the first monthly payment is to be made on May 3 2025 and since the final payment is scheduled to be made April 3 2055 the period of the loan is 130121 359 months a The formula for calculating the fixed monthly payment P required to fully amortize a loan of L dollars over a term of n months at a monthly See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member