A couple has decided to purchase a $120000 house using a down payment of $18000.

Question

A couple has decided to purchase a $120000 house using a down payment of $18000. They can amortize the balance at 10% over 20 years.
a) What is their monthly payment?
Answer = $
b) What is the total interest paid?
Answer = $
c) What is the equity after 5 years?
Answer = $
d) What is the equity after 15 years?
Answer = $ A couple has decided to purchase a $120000 house using a down payment of $18000. They can amortize the balance at 10% over 20 years.
a) What is their monthly payment?
Answer = $
b) What is the total interest paid?
Answer = $
c) What is the equity after 5 years?
Answer = $
d) What is the equity after 15 years?
Answer = $

Explanation / Answer

a. Balance left=120000-18000=102000

Per year payment=102000/12=5100

Interest=5100*10%=510

Total payment per year=5100+510=5610

Their monthly payment=5610/12=467.5

b Interest paid=510*12=10200

c. Equity=18000+5100*5=43500

d. Equity=18000+5100*15=94500

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