Respuesta :
Answer:
The price of the home = 232,000
20% is down payment.
Part A:
[tex]0.20\times232000=46400[/tex]
So, the loan amount will be =[tex]232000-46400=185600[/tex]
Loan amount or p = $185,600
Part B:
p = 185600
r = [tex]3.6/12/100=0.003[/tex]
n = [tex]10\times12=120[/tex]
The EMI formula is :
[tex]\frac{p\times r\times(1+r)^{n} }{(1+r)^{n}-1 }[/tex]
Now putting the values in formula we get
[tex]\frac{185600\times 0.003\times(1+0.003)^{120} }{(1+0.003)^{120}-1 }[/tex]
=> [tex]\frac{185600\times 0.003\times(1.003)^{120} }{(1.003)^{120}-1 }[/tex]
Monthly payments = $1844.02
Part C:
p = 185600
r = [tex]3.6/12/100=0.003[/tex]
n = [tex]20\times12=240[/tex]
Now putting the values in formula we get
[tex]\frac{185600\times 0.003\times(1+0.003)^{240} }{(1+0.003)^{240}-1 }[/tex]
=> [tex]\frac{185600\times 0.003\times(1.003)^{240} }{(1.003)^{240}-1 }[/tex]
Monthly payments = $1085.96
Part D:
For 10 year loan you have to pay = [tex]120\times1844.02=221282.40[/tex]
For 20 years loan you have to pay =[tex]240\times1085.96=260630.40[/tex]
So, you ended up paying [tex]260630.40-221282.40=39348[/tex] dollars more in longer loan.
The difference is $39,348.
