A man buys a house for $350,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 7 years. The interest rate on the debt is 13%, compounded semiannually.

Question

A man buys a house for $350,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 7 years. The interest rate on the debt is 13%, compounded semiannually.
(a) Find the size of each payment. 
$

(b) Find the total amount paid for the purchase. 
$

(c) Find the total interest paid over the life of the loan.

Anonymous · Answer

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