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Mortgage calculations

House Mortgage

Mr. and Ms.Ostedt have just purchased an $80,000 home and made a 25% down payment. The balance can be amortized at 10% for 25 years.

(a) What are the monthly payments?
(b) How much interest will be paid?
(c) What is their equity after 5 years?

Solution Preview

Total Down payment : $20,000
<br>Balance Remaining = $60,000
<br> So 60,000 = A (A/P,0.10,25) Here A is the annual payments.
<br> ALSO P = A (( ...