PLEASE ANSWER ALL QUESTIONS AND SHOW WORK 1 You wish to buy

PLEASE ANSWER ALL QUESTIONS AND SHOW WORK!

1. You wish to buy a home worth $250,000. You take out a 10-year mortgage with a 20% down payment. Your mortgage rate is 8%. How much is your monthly payment?

$2,426.55

$1,667.01

$2,483.82

$1,747.00

None of the above

2. With regard to the above problem, how much is your interest payment in the first month?

		$2,426.55
		$1,667.01
		$2,483.82
		$1,747.00
		None of the above

Solution

Home value $                              250,000 Down Payment20% $                                 50,000 mortgage amount $                              200,000 mortgage rate 8% year of mortgage 10 Total Monthly installments $                                       120 Monthly Payment $ -2,426.55 PMT(8%/12,120,200000) First month interest 200000*8%*(1/12) $ 1,333.33