QUESTION 21 Unit 4: You found a house you want to buy with a price of $299,900.
ID: 2753353 • Letter: Q
Question
QUESTION 21
Unit 4: You found a house you want to buy with a price of $299,900. The bank will loan you the money for 20% down at 3.77% APR for 15 years with monthly payments. You think you can make monthly payments of $1,650. Can you afford the house?
Yes; monthly payments = $1,113.83
Yes; monthly payments = $1,3922.24
No; monthly payments = $1,747.13
N0; MONTLY PAYMENTS = $2,183.92
Yes; monthly payments = $1,113.83
Yes; monthly payments = $1,3922.24
No; monthly payments = $1,747.13
N0; MONTLY PAYMENTS = $2,183.92
Explanation / Answer
No; monthly payments = $1,747.13
Note:- monthly payment = (principal * monthly interest rate )/ {1 - (1 + monthly interest rate)-number of payment
Monthly payment = [299900- 20%*(299900)] * (3.77%/12) / {1- (1+ 3.77%/12)-15year * 12
= 239920 * (0.0031) / { 1 - 1 / 1.746)
= 743.752 / 0.427
= 1741.8 (approx 1747.13)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.