Finance Writing Task-3.pdf - Maddie Douglas Kristen Hess Math120 Finance Writing Task 1[2 points Suppose that 7 years ago you bought a home for $450,000

Finance Writing Task-3.pdf - Maddie Douglas Kristen Hess...

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Maddie Douglas Kristen Hess Math120 Finance Writing Task 1. [2 points] Suppose that 7 years ago you bought a home for $450,000, paying 25% as a down payment, and financing the rest at 3.6% interest for 30 years. How much money did you pay as your down payment? $450,000 x .25 = $112,500 2. [2 points] How much money was your existing mortgage (loan) for? $450,000 - $112,500 = $337,500 3. [2 points] What is your current monthly payment on your existing mortgage? Note : Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent. N = the number of months (30x12): 360 I% = interest rate as the percent: 3.6 PV = amount of loan: 337,500 PMT = what we are looking to find FV = what we want to owe on the home at the end: 0 P/Y = number of periods per year, since monthly payments, 12 for 12 months a year: 12 C/Y = compounding per year, since compounding monthly: 12 $1534.43
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4. [2 points] How much total interest will you pay over the life of the existing loan? Total paid: $1534.43 x 360 = $552,394.8 Total borrowed: $337,500 Difference is interest paid: $552,394.8 - 337,500 = $214,894.8 5.
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