Need some help in calculus?

Answers:0   |   LastUpdateAt:2012-11-03 17:14:02  

Question
elijah
Asked at
Five years ago , Diane obtained a bank loan of $ 310,000 to help finance the purchase of a loft in San Francisco Bay area . The mortgage term was 30 years , and the interest rate of 9% / year compounded monthly on the unpaid balance . Because the interest rate for a conventional 30-year mortgage has dropped to 7 % / year compounded monthly , Diane is thinking about refinancing your property . ( Round your answers to the nearest hundredth . ) MedlinePlus MedlinePlus (A ) What is the current Diane monthly mortgage payment ? MedlinePlus $ Correct: . Your answer is correct MedlinePlus MedlinePlus ( B ) What is current outstanding principal Diane ? MedlinePlus $ Incorrect : . Your answer is incorrect MedlinePlus MedlinePlus ( C ) If Diane decide to refinance your property , ensuring a 30-year home loan mortgage in the amount of current outstanding principal on the current interest rate / 7 % per annum compounded monthly , what will your monthly payment mortgage?
$ MedlinePlus MedlinePlus ( D ) How much less would the monthly mortgage payment to be Diane if she refinances ? MedlinePlus MedlinePlus I worked this problem many times and can only get the part , someone please help
Answer1AlexAnswered at 2012-11-03 17:13:19
a)
Payment = rP / (1- (1+r)^(-n)

r=0.09/12
P=310,000
n=30x12=360 payments

Payment = (0.09/12)(310000) / (1-(1+.09/12)^(-360))
= $2,494.33
---------------------
c)
Payment = rP / (1- (1+r)^(-n)

r=0.07/12
P=310,000
n=30x12=360 payments

Payment = (0.07/12)(310000) / (1-(1+.07/12)^(-360))
= $2,062.44
-----------
saved = (360)($2,494.33) - (360)($2,062.44)
=$155,480.40
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