Question

Larry Davis borrows $90,000 at 11 percent interest toward the purchase of a home. His mortgage is for 25 years. Use Appendix D for
an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. How much will his annual payments be? (Although home payments are usually on a monthly basis, we shall do our analysis on an
annual basis for ease of computation. We will get a reasonably accurate answer.) (Do not round intermediate calculations. Round
your final answer to 2 decimal places.)
Annual payments
$
10,686.30
b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2
decimal places.)
Annual payments
c. How much should he be willing to pay to get out of a 11 percent mortgage and into a 9 percent mortgage with 25 years remaining
on the mortgage? Assume current interest rates are 9 percent. Carefully consider the time value of money. Disregard taxes. (Do not
round intermediate calculations. Round your final answer to 2 decimal places.)
Annual payments

Answer 1

Respuesta:

no entender

Explicación:

no entiendo