Solution Found!
House loan Suppose you take out a home mortgage for
Chapter 11, Problem 63E(choose chapter or problem)
House loan Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000 per month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer.
Questions & Answers
QUESTION:
House loan Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000 per month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer.
ANSWER:SOLUTION
Step 1
Suppose you take out a home mortgage for $180,000 at a monthly interest rate of 0.5%. If you make payments of $1000 per month, after how many months will the loan balance be zero? Estimate the answer by graphing the sequence of loan balances and then obtain an exact answer.