Posted by Tonia on Monday, August 8, 2011 at 11:05pm.
You have just graduated from college and landed your first big job. You have always dreamed of being a homeowner, and after carefully shopping for your dream home, you find one that you would like to purchase at a cost of $250,000. After researching banks to find the best interest rate, you find that Banks for Homeowners offers the best rate of 6% interest that compounds monthly for 30 years.
•What is the monthly payment for this loan?
•What is the unpaid balance of the loan at the end of 5 years?
•What is the unpaid balance at the end of the 10th year?

math  drwls, Tuesday, August 9, 2011 at 6:45am
There is a formula for this but I can't remember it. It is easier to use an amortization table such as the one at
http://www.bankrate.com/calculators/mortgages/amortizationcalculator.aspx?ec_id=m1027743
Using it, I got a monthly payment of $1498.88
After 5 years, the unpaid balance is $232,300.20
After 10 years, the unpaid balance is $209,214.31

math  drwls, Tuesday, August 9, 2011 at 6:47am
The formula to use can be found at http://www.amortizationformula.org/
Answer This Question
Related Questions
 math  You have just graduated from college and landed your first big job. You ...
 Algebra  You have just graduated from college and landed your first big job. ...
 algebra  You have just graduated from college and landed your first big job. ...
 ALGEBRA  Part III: Mathematics of Finance You have just graduated from college ...
 math  To purchase your first home, you may be required to borrow funds from a ...
 Cover letter Help  Okay, so I'm trying to get a job at this grocery store. And ...
 English  I did some of the corrections myself (in parentheses). Could you ...
 math 140 math for professional  Assignment Part I: A system of equations can ...
 English  I left out the following sentences. Thank you very much for your ...
 English  Can someone help me with the intro of my essay. my teacher says I have...
More Related Questions