What is the monthly payment according to the website

Assignment Help Mathematics

Reference no: EM132227507

Assignment -

Complete the all sub-questions. Show work, keep all digits for calculations but round answers to 2 decimals ($ and ¢).

A house costs $105,940. To get a loan the bank requires 9% down. To simplify (less realistic), closing costs, insurance and other fees are omitted. The purchase is financed with a 33 year fixed rate mortgage.

To personalize this project, the interest rate (as %) is (# of letters in your last name) + 0.(1st digit of SSN)%

Example: Smith = 5 letters, with SSN = 3xx-xx-xxxx, so 5.3%

Fill in the blanks for the

a. a required down payment: $_____ (show work).

b. amount of the mortgage (loan): $_____ (show work).

c. monthly payment (PMT): $_____ (fill in p271 formula & show work).

d. total interest paid during the period: $_____ (show work). Should be within + or - $100 of the true figure, depending how you rounded the PMT.

Go to the attached website with amortization capabilities and fill out the information (exclude any taxes, points, insurance, loan fees, PMI, etc) to find the monthly payment. Treat the loan as starting on Dec 31, 2020 (the first payment year is 2021).

Show $ and ¢ for all these results (2 decimals):

e. What is the monthly payment according to the website? Note: both monthly payment figures (parts "c" & "e") should match (within + or - $5). If they don't, recheck the calculations in the show-work formula and the values entered online.

f. Click the "Amortization" button and find the loan balance outstanding at the end of year 7: $_____

For the last 2 questions, all info is the same except the time period is 4 years shorter:

g. (use the website) what is the new PMT?

h. What is the revised total interest paid? (Show work).

Instructions: The interest rate needs to be 9.5%.

Attachment:- Assignment File.rar

Reference no: EM132227507

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