Homework Help: finance

Posted by tj on Friday, May 4, 2012 at 12:15am.

You take out a 30- yr mortgage loan, purchase price is $120,000 put $20,000 down and finances the balance of $100,000 at fixed annual loan rate of 12%, what will be your monthly payment? How much total interest will you have paid at the end of 30 years?

finance - Henry, Saturday, May 5, 2012 at 9:59pm
Pt = Po*r*t/(1-(1+r))^-t.

r = (12%/12) / 100% = 0.01 = Monthly %
rate expressed as a decimal.

t = 30yrs * 12mo/yr = 360 Months = Length of lan.

Pt = (100,000*0.01*360)/ (1-(1.01)^-360)= 360,000/0.97218331 = $370,300.53.
= Tot. Pd after 30 yrs.

Monthly(I+P)=370,300.53 / 360=$1028.61.

Tot. Int = Pt - Po=370,300.53-100,000 =
270,300.53.

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