MM255 Unit 8 Project Form 1

# MM255 Unit 8 Project Form 1 - Unit 8 Mortgages Project ....

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Unit 8: Mortgages - Project You must show your work on all problems.  You may type your answer right into this document. Total points for project:  45 points.  Projects must be submitted as a Microsoft Word document and uploaded to the Dropbox for Unit 1 All Projects are due by Tuesday at 11:59 PM ET of the assigned Unit. NOTE:  Project problems should not be posted to the Discussion threads. Questions on the project  problems should be addressed to the instructor by sending an email or by attending office hours. Part I.   Basic Computations 1. Annie Oakley is purchasing a home for \$215,000. She will finance the mortgage for 15 years and  pay 7% interest on the loan.  She makes a down payment that is 20% of the purchase price.   a. Find the monthly payment, including principal and interest. (5 points) Answer: 215,000/1000=215*8.99=1932.85 7/12=0.583333333*215,000.00=1254.17 1254.17-1932.85=678.68 b.  Calculate the total interest Annie will pay over the 15 year period. (5 points) Answer:  1932.85*12*15=347,913.00-215,000.00=132,913.00 c. How much more interest would Annie pay by paying for the home in 30 years rather than 15 years? (5 points) Answer: 6.65*215=1429.75*12*30=514,710.00-215,000.00=299,710.00 d. The annual taxes on Annie’s property come to \$7100, and she pays \$535 for insurance each

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• Spring '09
• KELLY
• Microsoft Word document, document. Total points, Discussion threads. Questions, I.   Basic Computations

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MM255 Unit 8 Project Form 1 - Unit 8 Mortgages Project ....

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