Calculate annual interest rate which is compounded monthly, Civil Engineering

Assignment Help:

You wish to buy a house and you can afford to make a down payment of $50,000. Your monthly mortgage payment cannot exceed $2,000. If 30-year loans are available at 7.5% annual interest rate which is compounded monthly, the highest price that you may consider is most nearly:

Solution:

n = 360 months interest = 7.5%-annual ÷ 12-months/year = 0.625% per month

Apply the equation:      

i (1+i)n / (1+i)n - 1

This yields (A/P, 0.00625, 360) = 0.00699 

Apply the following equation to find the highest price to consider:

P x 0.00699 = (Highest $  -  $50,000) x 0.00699   ≤   $2,000

Highest $ ≤   ($2,000/0.00699) + $50,000 = $336,123


Related Discussions:- Calculate annual interest rate which is compounded monthly

Stress, stress and there types

stress and there types

Build of a cmplete home, how can we build a complete home on an area of 500...

how can we build a complete home on an area of 500 meter squares with garden and house and a garage

Explain the bolted connections, Explain the Bolted Connections a) Quest...

Explain the Bolted Connections a) Questions generally relate to the size of the bolt needed for a connection or b) Number of bolts for a given loading and specified size

Indian standard codes, Indian Standard Codes All of the major countrie...

Indian Standard Codes All of the major countries like India, UK, USA, and Australia have their own standards for material standards, design procedures, testing standards, and

Define recommendations for design of ptfe sliding bearing, Define Recommend...

Define Recommendations for Design of PTFE Sliding Bearing? Other Recommendations for Design of PTFE Sliding Bearing 1. Expansion bearings having sliding surfaces of PTFE sha

The effects of earthquake on spatial trusses, Evaluation of various reports...

Evaluation of various reports regarding the effects of earthquake on spatial trusses History and static In this section we aim to provide a summary report of what was happ

What is a footing foundation for a water tower, A footing foundation for a ...

A footing foundation for a water tower carries a load of 9000 kN and is 3.6 metres square. It rests on dense sand of 9 m thickness overlying a clay layer of 3 metres depth. The cla

Sulphate-resisting cement not used in marine concrete, Question Explain...

Question Explain the reason why is sulphate-resisting cement not used in marine concrete ? Answer Major components of Portland cement are tricalcium silicate, dicalciu

Design of steel structure, design acolumn spice for column sections SC 250 ...

design acolumn spice for column sections SC 250 and SC 220 carrying a load of 500 KN

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd