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  3. you plan to take out a $700,000 mortgage for 30 ye

You plan to take out a $700,000 mortgage for 30 years with monthly payments. If you don’t...

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Advance Math

  1. You plan to take out a $700,000 mortgage for 30 years withmonthly payments.
    1. If you don’t have a down payment, they will offer you aninterest rate of 5.7%. If you can make a down payment of at least$20,000 they will lower the interest rate to 5.2%. Calculate themonthly payment for each loan.
      1. You would like to see how long it will take you to come up witha down payment. You already have $6,000 and can put away $500 everyquarter at 4% interest compounded quarterly. How long will it takeyou to save up to $20,000?

Answer & Explanation Solved by verified expert
4.5 Ratings (709 Votes)
According to given information the mortgage value is 700000 If no down payment is there then Period t 30 x 12 360 monthly payments Rate of interest r 5 7 Rate of interest r 57 100 0057 005712 000475 Now we can use the below formula to find the monthly payment PMT PMT p x r x 1rt 1rt1 PMT 700000 x 000475 x 1000475360 10004753601 PMT 3325 x 100475360 1004753601 PMT 3325 x    See Answer
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