a)
Solve for
b)
c)
Can someone please tell me how i solve this ? thanx
A couple wants to buy a house and can afford to pay $1400 per month.
a) if they can get a loan for 30 years with the interest at 8% per year on the unpaid balance, how much can they pay for the house?
b) what is the total amount paid over the life of the loan?
c) what is the interest paid on the loan?
I think the answer to part A is $463,680. is that right ? but i dont know how to do parts b and c. thanks
Hello, Stephen!
This is an Amortization problem.
You should have been given this formula:
. . where: .
A couple wants to buy a house and can afford to pay $1400 per month.
a) If they get a loan for 30 years with 8% interest per year on the unpaid balance,
how much can they pay for the house?
We have: .
Solve for
They can pay up to for the house.
b) What is the total amount paid over the life of the loan?
$1400 per month for 360 months: .
c) What is the interest paid on the loan?
Total interest is: .