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)
---------------
i
To get interest, PMT * 25 - FV.
To calculate the number of days in the discount period, you need to find the difference between the discount date and the date the loan was made. Here's how you do it:
1. Find the number of days from July 15 to November 20.
- July has 31 days, August has 31 days, September has 30 days, October has 31 days, and November has 20 days.
- So, the total number of days from July 15 to November 20 is: 31 + 31 + 30 + 31 + 20 = 143 days.
2. Subtract the length of the loan from the total number of days calculated in step 1.
- The length of the loan is given as 150 days.
- 150 - 143 = 7 days.
Therefore, the discount period is 7 days.