P = (Po*r*t)/(1-(1+r)^-t)
2. Po = $146,800
r = (5.25%/12)/100% = 0.004375 = Monthly
% rate.
t = 30yrs. * 12mo./yr. = 360 Months.
Plug the above values into the given Eq
and get: P = $291,828.61
Monthly Payment = P/t
4. Same procedure as #2.
6. I = P-Po
8. I = P-Po
Find the monthly payment.
Mortgage amount Annual percentage rate
2. $146,800 5.25% 30 years
4. $113,400 5% 15 years
6. Find the interest paid the mortgage in exercise 2.
8. Find the total interest paid for the mortgage in exercise 4.
1 answer
1 answer