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anonymous
 5 years ago
You have just grduated from college and landed youyr first job, you purchase a house cost 250,000 and find a bank interest rate 6% that compounds monthly for 30 years.
what is the monthly payment for this loan?
what is the unpaid balance at the end of 5 years?
what is the unpaid balance at the end of the 10th year?
I think I should use the formula A=p(1+I)n but I am not sure please help.
anonymous
 5 years ago
You have just grduated from college and landed youyr first job, you purchase a house cost 250,000 and find a bank interest rate 6% that compounds monthly for 30 years. what is the monthly payment for this loan? what is the unpaid balance at the end of 5 years? what is the unpaid balance at the end of the 10th year? I think I should use the formula A=p(1+I)n but I am not sure please help.

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anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0Yes yo do use that formula:\[C(t) = Co(1+r)^t\] Where, C(t) is the cost in the future Co is the initial cost r is the rate in decimals not % (6% = 0.06) t is the time period, in this case in years.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I have A=250.000 (1+.06) 12 A=250.000 (1.06) 12 I don't know the next step

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0mathmind can yo help me when you're done

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0why did you put 12 as your t? @btm2011, yes i'll try

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I don't know should I put 30 cause thats the years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0hmm not quite. Here we are making a formula of the Cost over the period of time t so,\[C(t)=250,000(1+.06)^t\]\[C(t) = 250,000(1.06)^t\] this is the formula to find the cost at any time t (which is measure in years in this problem). If we want to know the unpaid balance at the end of 5 years, what do we do?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ummm take 250,000 (1.06) 5 i divide then multiply

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0what are you dividing ?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0that's a multiplication, isn't it?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ok so 250,000 (1.06) I got 265 then I divide that by 5

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0nope, do you know what a exponent is ? some number to the Nth power?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0oh heck no. that is not the formula at all for paying off a loan. that is the formula for interest.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0if i can figure out how to send an attachment i will send the correct formula.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0last formula is the one you use for loan payments.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0No, an exponent or power tells you how many times a number is multiplies by itself:\[2^2 = 2*2 = 4\]\[2^3 = 2*2*2 = 8\]\[2^4 = 2*2*2*2 = 16\] and so on.. so, what we have is:\[C(t)=250,000(1.06)^t\]in 5 years:\[C(5 years)=250,000(1.06)^{5years}\]\[C(5)= 250,000(1.06*1.06*1.06*1.06*1.06) = 334,556.39\]Hence, the unpaind balance would be: 334,556.39  25000 = 84556.4

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0that's not it ? which one is it then?

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0this is just not right. You are answering the following question: "if you invest $250,000 at 6% compounded monthly, how much will you have in 30 years" this question says something different. "What are your monthly payments?"

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0@ Satellite73 yes and it then ask for the unpaid balance after 5 years and 10 years

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0\[PMT=\frac{250000\times \frac{.06}{12}}{(1(1+\frac{.06}{12})^{12\times 30}}\]

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0i got $1498.88 rounded. i can try again, but this sounds about right.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0sio take 250000 multiply by .06 then divide by 12

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0as you can see the formula is a bit complicated so you have to be careful when entering it into a calculator. lots of room for mistake.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0mathmind, can you please help me

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0do I divide .06 with 12 first then multiply the answer by 250000

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0that is your numerator. order does not matter. multiply by 250000 by .06 then divide by 12 or divide .06 by 12 then multiply by 250000 get the same thing

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0the denominator is much trickier. if you have a good calculator put it all in at once. be careful with parenthese

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I don't have one with me

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0then you certainly cannot do this. you cannot compute these things by hand.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I have a regular one not one that you are aking if I have

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0just a regular made in china hybrid power one

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0then you have to use lots of parentheses.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0ok I am tryn but just can't get this
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