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Unformatted text preview: I=5/12=0.4167% PV=75,000 PMT=795.5060 c. Reset to the original premise of a 5 year loan with you making a down payment of $20,000. If the dealer offered you 5 year loan with monthly payments of $1,372.79, what annual rate of interest would be implicit in the loan? N=5*12=60 PMT=1372.79 PV=75,000 I=None Yang Chen (0563079) 351A 4. You desire to buy a house in San Francisco, a modest 3 bedroom, 2 bath fixer upper for $850,000. You will make a standard down payment of 20%. If you can finance at 5.15% annually, what will your monthly mortgage payments be? Pv=680,000 I=5.15/12=0.4292% Pmt N 5. You decided that you can only afford monthly payments of $3,200 per month and a down payment of $150,000. What is the maximum value of the home you can acquire assuming a rate of 5.15% annually? Pmt=3,200 I=5.15/12=0.4292% N=360 Pv=586,025.9863 Max value=586,025.9863+150,000=736,025.9863...
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This note was uploaded on 07/27/2011 for the course ACCT 351A taught by Professor Robertwong during the Spring '11 term at University of San Francisco.
- Spring '11