1) The Taylors have purchased a $160,000 house. They made an initial down payment of $10,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.) $
What is their equity (disregarding appreciation) after 5 years? After 10 years? After 20 years? (Round your answers to the nearest cent.)
5 years $
10 years $
20 years $
2) Joe secured a loan of $10,000 three years ago from a bank for use toward his college expenses. The bank charges interest at the rate of 5%/year compounded monthly on his loan. Now that he has graduated from college, Joe wishes to repay the loan by amortizing it through monthly payments over 11 years at the same interest rate. Find the size of the monthly payments he will be required to make. (Round your answer to the nearest cent.) $