Algebra

[pic] 12.1 1. The occlusiveic mortgage would be such that the present pronounce of the mortgage join is equal to the give amount. To find the periodical mortgage amount, we use the PV of annuity formula since periodic compensation is the annuity and the PV is the give amount. The PV of annuity is stipulation as PV = PMT [(1 - (1 / (1 + i)^n)) / i] Where PV = loan amount PMT = monthly mortgage payment i = monthly interest rate n = monthly periods Using the preceding(prenominal) formula we calculate the monthly payments for the given rates and loan amount and time period a. 6.25%, 15 year, $150,000 150,000 = PMT [(1-(1/(1+6.25%/12)^(15X12))/6.25%/12] PMT = $1,286.13 come amount paid = 1,286.13 X 15 years X 12 months = 231,503.40 Loan amount = $150,000 Interest paid = 231,503.40-150,000 = $81,503.4 b. 6.25%, 15 years, 175,000 175,000 = PMT [(1-(1/(1+6.25%/12)^(15X12))/6.25%/12] PMT = $1,500.49 join amount paid = 1,500.49 X 15 x 12 =270,088.20 Loan amount = 175,000 Interest paid = 270,088.20 175,000 = 95,088.20 Doing the comparable mood we are able to fill the table Monthly compensation is | |6.25% |6.50% |7% | |Amount |15 |20 |30 | | 150,000 |$1,286.13 |$1,118.36 |$997.95 | | 175,000 |$1,500.49 |$1,304.75 |$1,164.28 | | 200,000 |$1,714.85 |$1,491.15 |$1,330.60 | Total interest paid is | |6.25% |6.50% |7% | |Amount |15 |20 |30 | | 150,000 |$81,504.17 |$118,406.33 |$209,263.35 | | 175,000 |$95,088.20 |$138,140.72 |! $244,140.57 | | 200,000 |$108,672.23 |$157,875.11 |$279,017.80 | 2. Loan amount = 175,000-20,000=155,000. The rate is 6.75% and period is 25 years. Using the PV of annuity formula...If you want to get a intact essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper