The Method Used To Determine Loan Payments Assignment Paper

1. Jenelle bought a home for $450,000, paying 10% as a down payment, and financing the rest at 6% interest for 30 years. Round your answers to the nearest cent.

a. How much money did Jenelle pay as a down payment? $

b. What was the original amount financed? $

c. What is her monthly payment? $

d. If Jenelle makes these payments every month for thirty years, determine the total amount of money she will spend on this home. Include the down payment in your answer. $ The Method Used To Determine Loan Payments Assignment Paper

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2. Roberto bought a $320,000 house, paying 16% down, and financing the rest at 7% interest for 30 years. His monthly payments are $1788.33. How much will he really pay for his $320,000 house?

3. You want to buy a $222,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan for the rest.

a) How much is the loan amount going to be?

b) What will your monthly payments be if the interest rate is 6%?

c) What will your monthly payments be if the interest rate is 7%?

4. You want to buy a $200,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 6.85% interest for the rest.

a) What will your monthly payments be?

b) How much total interest do you pay?

c) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?

d) How much money in interest will you save if you finance for 15 years instead of 30 years? The Method Used To Determine Loan Payments Assignment Paper

5. Henry’s monthly minimum credit card payment is calculated by first applying 17% APR which is compounded monthly to the outstanding loan amount. Then he pays 2% of that figure. Currently, Henry has a balance of $12025.

a. What will his monthly payment be? $ hint: First apply the 17% remember that it’s monthly, then take 2% of that number

b. Assuming that he only pays the minimum what will his new loan balance be? $

c. How much did his debt decrease by?

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The Method Used To Determine Loan Payments Assignment Paper