Ask Question
13 November, 19:12

You put 20% down on a home with a purchase price of $250,000. The down payment is thus $50,000, leaving a balance owed of $200,000. The bank will loan the remaining balance at 3.91% APR. You will make annual payments with a 30-year payment schedule. What is the annual annuity payment under this schedule

+4
Answers (1)
  1. 13 November, 19:33
    0
    The amount payable yearly under the mortgage is $ 11,439.96

    Explanation:

    The annual annuity payment can be arrived at by using the pmt formula in excel, which is stated thus:

    =pmt (rate, nper,-pv, fv)

    the rate of interest on the mortgage which is 3.91%

    nper is the duration of the mortgage which is 30 years

    pv is the amount of loan to be repaid over 30 years, that is $200,000

    fv is the sum of the principal and total interest repayable, since it is not known it is taken as zero

    =pmt (3.91%,30,-200000,0)

    pmt=$ 11,439.96

    The annual annuity payment under the schedule is $ 11,439.96
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You put 20% down on a home with a purchase price of $250,000. The down payment is thus $50,000, leaving a balance owed of $200,000. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers