20% down, so there is P=$160000 left for the mortgage.
Period, n = 15 years
rate = 15%,
rate multiplier, R = 1.15
Assume interest is compounded yearly.
Let Yearly payment = A
then A is given by the mortgage formula
PR^n = A(R^n-1)/(R-1)
or
A=PR^n*(R-1)/(R^n-1)
=160000*1.15^15*(1.15-1)/(1.15^15-1)
=27,362.73
Monthly payment
=27,362.73/12
=2280.23
Rebecca and Tom Payton have decided to buy a home that costs $200,000. The Paytons can put down 20% of the home's price. They have applied for a 15-year, 9% FRM to finance the balance. They Paytons have a combined gross annual income of $70,000.
How much will the Paytons pay to satisfy their mortgage loan, if they make all the payments on time for the amount being financed?
2 answers
uhm..it's a multiple choice questions and that isn't one of the choices :/
6 answers