# 7012 assuming you can afford to put aside 20 of your

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income taxes - (gross annual salary x 0.70)+12 Assuming you can afford to put aside 20% of your monthly take home pay (Monthly take home pay x 0.20) into saving toward the down payment on your house, use the TVM Solver app for annuities on your calculator to determine how long it will take you to save up the amount of the required down payment if your savings earns 4% interest annually. 6. Calculating Payments: Using the amortization formula, calculate the monthly payment you would have to make on a loan for the amount of your loan principal for two different loan periods (15.20, or 30 years) (Do NOT use online ban payment calculators; however, check your calculations with TVM solver ) Hand written calculations are acceptable if neat and organized. Or, in Microsoft Word, click the "Insert tab and choose "Equation for the equation editor. 7. Calculating Total Cost and Interest: Using the information and answers from above, calculate the total cost of your purchase; be sure to include everything you paid for the home down payment, closing costs, loan payments, etc.) over the life of the loan for the two different loan periods you chose. Then calculate how much interest you would pay on these loans interest paid total of your mortgage payments over the life of the loan-loan principal)

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• Fall '19
• Calculation, take-home pay, TVM Solver

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