Sabrina has decided to invest her savings in real estate. 20 months ago, she purchased...
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Sabrina has decided to invest her savings in real estate. 20 months ago, she purchased a duplex for $800,000. She could afford to make a down-payment of $50,000. The bank gave her a 30-year mortgage with constant monthly payments at a quoted APR of 12% with semi-annual compounding. Today, (after making her last monthly payment to the bank) Sabrina was able to resell her property for $815,000. With the money she has left after paying the bank for the remaining mortgage, Sabrina will make a down-payment on a new property. What is the down-payment she can make on this new property? Hint: First find the monthly payments she must make. Select one: a. $45,320.68 b. $60,718.76 c. $73,922.57 d. $70,026.35 e. $58,026.36
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