Homework Help: math

Posted by emma on Monday, May 21, 2012 at 12:59pm.

Mr. Smith is purchasing a $190000 house. The down payment is 20% of the price of the house.
He is given the choice of:

(A) a 20-year mortgage at a rate of 6%.
Find:
(i) The monthly payment: $
(ii) The total amount of interest paid: $

math - Henry, Wednesday, May 23, 2012 at 9:27pm
P = (Po*r*t)/(1-(1+r)^-t).

r = (6%/12) / 100% = 0.005 = Monthly %
rate expressed as a decimal.

t = 12mo/yr * 20yrs = 240 Months.

Po = 0.8 * 190,00 = $152,000.

P=(152000*0.005*240) / (1-(1.005)^-240
= 182400 / 0.69790 = $261,354.05

Monthly(I+P) = 261,354.05/240 = $1088.98.

Int. = P - Po = 261,354.05 - 152,000 =
$109,354.05.

Answer this Question

Related Questions

Math - Mr. Smith is purchasing a $190000 house. The down payment is 20% of the ...
math - Kathy and Tommie put down 20%, or $35,000, to purchase a new house. What ...
Real Estate Finance - The mortgage company requires a down payment of $11,500 on...
math - Ever wonder how much a house “actually” costs? Consider Alex ...
Algebra - Can you help me set this up? Mr. Smith could ride his 10-speed bike 4....
Math - You wish to purchase a house for $200,000 with 20% down. You will have it...
Math - If sally can paint a house in 4hrs, and John can paint the same house in ...
math - Lauren and mark obtained a 20 year 120,000 conventional mortgage at 10.5...
Essential Mathematics - A builder estimates that the cost of building a house is...
math - Samir's mom is a real estate agent. When she sells a house, she ...

For Further Reading

First Name:
School Subject:
Answer: