Susan Carver will purchase a home for 150000 She will use a

Susan Carver will purchase a home for $150,000. She will use a down payment of 24% and finance the remaining portion at 6.6%, compounded monthly for 15 years. Complete parts (a) through (c) below (a) What will be the monthly payment? Susan will pay $ 999.34 each month (Round to the nearest cent as needed.) (b) How much will remain on the loan after making payments for 12 years? The amount remaining on the loan will be S 32557.58 (Round to the nearest cent as needed.) (c) How much interest will be paid on the total amount of the loan over the course of 15 years? The amount of interest that will be paid is (Round to the nearest cent as needed.)

Solution

a) Downpaymemt = 0.24*150000 = 114000

Use Excel function

PMT(0.066/12,12*15,-114000,0,0)

= $962.92

So, Monthly Payment is $962.92

b) use Excel function

PV(0.066/12,12*3,-962.92,0,0)

= $31371.05

c) Total Interest paid = $962.92*12*15-$11400 = $59324.74