# Math

posted by .

Denise and David purchased a home in Dallas, Texas. In February 2003 for \$250,000. They were able to make a down payment of \$80,000, and borrowed the rest through a 15 year mortgage at 4.5% compounded semi-annually.

If they make equal monthly payments, how much is each payment?

• Math -

So the balance to be mortgaged is 170 000

I am not sure if the rules for mortgage rates are the same in the US as they are in my Canada, but in general the interest period must coincide with the payment period, we have monthly payments but semi-annual compounding.

must find the equivalent monthly rate, let that rate be i
(1+i)^12 = 1.0225)^2
1+i = 1.0225^(1/6) = 1.00371532
i = .00371532

let the payment be P
P( 1 - 1.00371532^-180 )/.00371532 = 170 000
P = ....

I got \$1296.88

## Similar Questions

1. ### consumer math grade 12

jesse buys a 150 000 house and will make a 30 000 down payment the bank will charge him an interest rate of 5% with the mortgage amoritized over 15 years determine the monthly mortgage payment
2. ### Math

Stacy requires \$3,000 in three years to make a down payment on a new car. She will receive 8% compounded annually for the three years. How much must she invest today to have the \$3,000 in three years?
3. ### Math

Stacy requires \$3,000 in three years to make a down payment on a new car. She will receive 8% compounded annually for the three years. How much must she invest today to have the \$ 3,000 in three years?
4. ### Finance

Say that you purchase a house for \$270,000 by getting a mortgage for \$235,000 and paying a \$35,000 down payment. If you get a 15-year mortgage with a 8 percent interest rate, what are the monthly payments?
5. ### math

Model this situation w/ a linear system: Melissa borrowed \$10, 000 for her university tuition. She borrowed part of the money at an annual interest rate of 2.4 % and the rest of the money at an annual rate of 4.5 %. Her total annual …
6. ### Economics

Calculate the total dollar amount paid for a house purchased for \$200,000. The buyer paid \$50,000 as down payment and the remaining \$150,000 was obtained with a closed mortgage having a 25 year loan at 10% interest compounded semi-annually …
7. ### Math

Shantle and Kwamie are planning to buy their first home. Although they are excited about the prospect of being homeowners, they are also a little frightened. A mortgage payment for the next 30 years sounds like a huge commitment. They …
8. ### Math

Pey Soon has taken out a 20-year, \$150,000 mortgage with monthly payments (made at the end of each month) at a stated mortgage rate of 6.8% per year compounded semi-annually. If she makes each payment on time, what will be the mortgage …
9. ### college maths

A property worth \$15,000.00 is purchased for 10% down and semi-annual payments of \$1750.00 for twelve years. What is the effective rate of interest if interest is compounded semi-annually?
10. ### math118

The price of a home is ​\$102,000. The bank requires a​ 20% down payment and three points at the time of closing. The cost of the home is financed with a​ 30-year fixed-rate mortgage at 9.5%  Find the required down payment.

More Similar Questions