You plan to take out a $700,000 mortgage for 30 years with monthly payments. If you don’t...

80.2K

Verified Solution

Question

Advance Math

You plan to take out a $700,000 mortgage for 30 years withmonthly payments.
If you don’t have a down payment, they will offer you aninterest rate of 5.7%. If you can make a down payment of at least$20,000 they will lower the interest rate to 5.2%. Calculate themonthly payment for each loan.
You would like to see how long it will take you to come up witha down payment. You already have $6,000 and can put away $500 everyquarter at 4% interest compounded quarterly. How long will it takeyou to save up to $20,000?

Answer & Explanation Solved by verified expert

4.5 Ratings (709 Votes)

According to given information the mortgage value is 700000 If no down payment is there then Period t 30 x 12 360 monthly payments Rate of interest r 5 7 Rate of interest r 57 100 0057 005712 000475 Now we can use the below formula to find the monthly payment PMT PMT p x r x 1rt 1rt1 PMT 700000 x 000475 x 1000475360 10004753601 PMT 3325 x 100475360 1004753601 PMT 3325 x 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