Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Twila Griffen bought a new condominium for $110,000. She put down 10% and obtained a mortgage at 8% for 25 years. What is her (a) monthly payment, (b) the total interest cost, and (c) cost of interest for the first payment?
- Alison Wolfe bought a new chalet for $80,000 at 9% for 30 years. Prepare an amortization schedule for the first two periods.
- Aster Smith bought a home in Ventura, California, for $110,000. He put down 20% and obtained a mortgage for 30 years at 10%. 1) What is Aster's monthly payment? 2) What is the total interest cost of the loan?
- If in Problem No. 3 the rate of interest is 12%, what is the difference in interest cost?
Click here for Calculations/Applications answers. |
