posted by Pascal on .
loan made july 15, length of loan 150, date of discount november 20. how many days is the discount period
I am sure you can count days on a calendar just as well as I can.
Ben and Mal Scott plan to buy a home for $272,900. They will make a 10% down payment, and qualify for a 25-year, 7% mortgage loan.
a. What is the amount of their monthly payment?
b. how much interest will they pay over the life of the loan?
1. Find down payment.272900* 0.1.
2. Hence Future value = (272900 - down payment).
3. Use I = 0.07, n= 25 and apply future value formula to get PMT.
FV = PMT ((1+ i)^n -1)
To get interest, PMT * 25 - FV.