Problem 7-3 (LG 7-4) You plan to purchase an $140,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 4 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 230th payment. c. Calculate the amount of interest and, separately, principal paid in the 260th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.. 32.16)) a, b. Answer is complete but not entirely correct. Amount Monthly payment Amount of interest Amount of principal 601.54 388.99 212.553

Problem 7-3 (LG 7-4) You plan to purchase an $140,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 4 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 230th payment. c. Calculate the amount of interest and, separately, principal paid in the 260th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.. 32.16)) a, b. Answer is complete but not entirely correct. Amount Monthly payment Amount of interest Amount of principal 601.54 388.99 212.553

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 24PROB

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