this is what I got thus far . please help (plz dont post negative things).
1. Annie Oakley is purchasing a home for $215,000. She will finance the mortgage for 15 years and pay 7% interest on the loan. She makes a down payment that is 20% of the purchase price.
a. Find the monthly payment, including principal and interest. (5 points)
Answer: $1546.28 monthly payment
215 ,000 * 20 % = 43,000
Principal = 172,000
Intrest. 106330.4
b. Calculate the total interest Annie will pay over the 15 year period. (5 points)
Answer: 106330.4
c. How much more interest would Annie pay by paying for the home in 30 years rather than 15 years? (5 points)
Answer: 133437.60 more intrest
d. The annual taxes on Annie’s property come to $7100, and she pays $535 for insurance each year. Find her monthly PITI payment. (5 points
Answers & Comments
Verified answer
Usually the formula goes like this (and it is a simple one, not a banker's)
principal = price - down;
interestRate = (number / 100 ) / 12;
months = loan.years * 12;
payment = (principal * interestRate) / ( 1 - ( 1+interestRate ^ (-1*months) ) ) * 100 ) / 100;
That is: $1545.98 per month
180 months of 1545.98 = 278276.40 total dollars paid
278276.40 - 172000 = 106276.40 in interest paid
The true monthly payment is ( ins + tax) / 12, which is not financed, but included each month
636.25 + 1545.98 = $2182.23
For your information, bankers use fractions of penny instead of decimal and they never round down any amount.
A spreadsheet program helps, so you can fix numbers quicker.