Q4* Use the following amortization chart:Selling priceof home$ 75,000Down payment$ 4,000Rate ofPrincipal (loan) interest$ 71,0005.5%Total cost of interestYears Payment per $1,00030$ 5.6779Monthly mortgagepayment$ 403.13Assume the interest rate rises to 7.0%. What is the total cost of interest with the new interest rate? (Use Table 15.1).Note: Round your intermediate calculations and final answer to the nearest cent.

It has been provided: Selling price of house = $75,000.00 Down payment = $4,000.00 Loan amount =…

Use the following amortization chart: Selling price of home $ 75,000 Down payment $ 4,000 Rate of Principal (loan) interest $ 71,000 5.5% Total cost of interest Years Payment per $1,000 $ 5.6779 30 Monthly mortgage payment $ 403.13 Assume the interest rate rises to 7.0%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent.

Use the following amortization chart: Selling price of home $ 75,000 Down payment $ 4,000 Rate of Principal (loan) interest $ 71,000 5.5% Total cost of interest Years Payment per $1,000 $ 5.6779 30 Monthly mortgage payment $ 403.13 Assume the interest rate rises to 7.0%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest:???
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