Help on Finance!
I missed the lesson in class, I need help on one question then i should be able to figure out how to do the rest of my assignments! Please and thank you, it would be greatly appreciated. (Happy)
The current value of a home is $180,000. There is an outstanding mortgage on the home for $130,000 at 7.5%. With 25 years remaning on the mortgage. The value of this particular home has been increasing at a rate of 3% a year.
a) What is the estimated value of the home after 5 years, correct to the neartest $100.
b) how much is still owed on the home after 5 years?
(hint: find the monthly payment, than find future value after 5 years)
(capitals/bolded are where the answer should be in the tmv solver)
There is a reason why there are lectures. You should attend them.
Please learn to speak english, rather than jargon. Define all terms, no matter how common you think they are.
What are these?
I think you should use your hints and show us what you get.
TMV solver is how you solve questions like this on your calculator.
This sis the layout for the TMV solver.
This is what i get for A) 180,000 x 0.03 = 5400
5400 x 5 =$27,000
27,000 + 180,000 = $207,000.
.. I'm not sure if this is correct.
n= 25 x 12 (total number of payment periods) .. 25 years, 12 months a year since its paid for monthly
i%= 7.5 (interest)
pv= 180, 000 (present value)
PMT= (payments per month)
FV=0 (future value)
p/y=12 (payments per year)
c/p=2 (compound period)
With this format i get my PMT to be 1316.79885.
Are you asking HOW these solutions are arrived at,
or how to use your calculator?
If you can't keypunch correctly, can you not use the calculator's manual?
this doesnt stack up .
Originally Posted by chelseam
House appreciates at 3% pa, one can assume its compunded annually so part a is wrong
the loan is 130k not 180k so part b is wrong.
In addition c/p dont stack either
As to punching this stuff into a calculator. GIGO