Respuesta :
Answer:
Given Data:
Selling price = $235,000
Down Payment = 20% of Selling Price
I = Interest Rate (yearly) = 7%
i = Interest Rate (monthly) = 0.583%
n = Term of Payment = 3 years = 360 months
Taxes (monthly) = $208.33
Insurance (monthly) = $109
Total Payment (monthly) = $1,568.10
Explanation:
As 20% of the selling price is already paid upfront. The principal amount can be obtained as follows:
P = Principal Amount = 235,000 - (235,000 * 20%)
P = Principal Amount = $188,000
Monthly Payment will be,
M = Monthly Payment = Total Payment - Tax - Insurance
M = Monthly Payment = 1568.10 - 208.33 -109
M = Monthly Payment = 1250.77 = $ 1251
Initial interest payment can be calculated by,
Interest (1st month) = Principal Amount * [tex](\frac{Interest\; Rate}{12})[/tex]
Interest = 188000 * [tex](\frac{7\%}{12})[/tex]
Interest = $1097
Now let us calculate the amount of principal remaining (R) after 2 months.
[tex]R\; =\; \frac{1}{i}\;*\;[M\;+\;(1\;+\;i)^x\;*\;(P*i-M)]\\\\where\;=\;2\;(months),\\\\\therefore R\; =\; [1251\;+\;(1\;+\;0.00583)^2\;*\;(188000*0.00583-1251)]\;*\;\frac{1}{0.00583}\\\\\\[/tex]
R = $187690.43
