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John's family expanding in number, and so he decides to
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# Question : John's family expanding in number, and so he decides to : 3366

John's family is expanding in number, and so he decides to sell his current home and upgrade to a larger home. He estimates that he can sell his current home for \$400,000 and can buy a larger home for \$475,000. He plans to use the entire \$400,000 sale proceeds as a down payment on the new home and will finance the remainder for 10 years at 6% nominal annual interest compounded monthly. What is his estimated monthly mortgage payment? Assume that a piece of property is purchased for \$500,000. A 20% down payment is made and the rest is financed through a 30-year mortgage loan with a 5.25 % annual interest rate, compounded monthly. The loan will be repaid in equal monthly payments. Calculate the monthly payments. What is the total interest paid through the life of the loan?

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Finance 1 Year Ago 129 Views