Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.7 The Cost of Home Ownership - Exercise Set 8.7 - Page 555: 1

Answer

a) $44,000$ b) $176,000$ c) $5280$ d) $1171$ e) $245,560$

Work Step by Step

a) $220,000\times .20 = 44,000$ b) $220,000 - 44,000 = 176,000$ c) $176,000 \times .03 = 5280$ d) $PMT = \frac{176,000(\frac{.07}{12})}{1-(1+\frac{.07}{12})^{-12(30)}} = 1171$ e) $1171\times 30\times 12-176,000=421,560 - 176,000 = 245,560$
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