Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 4%/a, compounded monthly
How long will it take to repay the loan?
How much will be the final payment?
Determine how much interest she will pay for her loan.
How much sooner would the loan be paid if she made a 15% down payment?
How much would Vanna have saved if she had obtained a loan 3%/a, compounded monthly?
Write a concluding statement about the importance of interest rates and down payments when taking out loans.
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