I've tried getting in contact with my instructor on this question, and I've had no luck. I don't need the problem to be done for me, I just need to be pointed in the right direction. That being said, here's the question: A couple would like to place a 20% down payment on a home. If they invest their money at 3.76% for 8.75 years compunded monthly (A) how much money will they have for a down payment if their dream home costs $325,000, (B) How much will their house payment be?
Like I said, I don't need that answers, just the way to figure this out.
Thanks.
2007-11-29 04:56:07 · 10 answers · asked by seaelven 4 in Education & Reference ➔ Homework Help
Yeah, the question doesn't say how much they started with....See my frustration?
2007-11-29 05:02:43 · update #1
You don't need to know how much they invested to calculate a 20% down payment on a $325,000 home or to find the monthly payment.
A 20% down payment on this house would be $65,000.
However, to find the monthly payments, you need to know the rate and term. Is it a 15, 30, 40 year loan? What is the interest rate on this loan?
U can't get the answer without this information.
2007-11-29 08:28:07 · answer #1 · answered by Classy PG 2 · 1⤊ 0⤋
A) how much will they have? 20% of 325,000
B) depends on the amortization period.
Perhaps the question is: how much do they have to save each month to build the 20% of %325,000.
let x = amount saved a month
then: x(1+3.76/1200)^(8.75*12)=20% of 325,000
solve for x
2007-11-29 05:02:00 · answer #2 · answered by krumenager 3 · 0⤊ 0⤋
For part A, you left out a very important piece of information: How much money did they invest at 3.76%.
For part B, you say nothing about the terms of the mortgage, therefore it is unanswerable
2007-11-29 05:00:05 · answer #3 · answered by dogsafire 7 · 0⤊ 0⤋
Besides lacking the amount of money invested, the problem fails to mention the interest rate for the mortgage.
2007-11-29 05:05:17 · answer #4 · answered by Samwise 7 · 0⤊ 0⤋
What is 20% of 325,000? Then take that and x it by the 3,76% and divide it by the 8.75 yrs
2007-11-29 05:02:01 · answer #5 · answered by Bubba Hyde 1 · 1⤊ 1⤋
figure out the 20% for the cost of the home then multiply it by the APR and finally multiply that answer by the number of years
2007-11-29 04:59:35 · answer #6 · answered by hicks.jenn 3 · 0⤊ 0⤋
How much are they investing and what is the interest rate and term of the loan?
2007-11-29 05:04:02 · answer #7 · answered by blessedlyrich 2 · 0⤊ 0⤋
You have to know how much money they are making! There is not enough information.
2007-11-29 05:00:07 · answer #8 · answered by Anonymous · 0⤊ 0⤋
how many years would the money be invested for.
2007-11-29 05:06:52 · answer #9 · answered by jumbled 2 · 0⤊ 0⤋
you need 24356% over 4532827
2007-11-29 05:00:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋