- #1

s3a

- 818

- 8

__#8 re-typed here for your convenience:__

A family has a $130,000, 25-year mortgage at 4.2 %, compounded monthly.

a) Find the monthly payment.

b) Find the unpaid balance after 15 years.

c) Find the total amount of interest paid on the mortgage.

In other words, in the solutions pdf ( https://www.docdroid.net/4UqxHKU/answer.pdf ),

**what's (1+0.00354)^(-180) / 0.00354 supposed to be?**(The value 0.00354 is i = (4.25/100)/12 and -n = -15*12 = -180.)

Is the solution incorrect?

**Is it trying to say $700.63 * (F/A, 0.0425/12, 15*12) = $373,527.03?**

Any input that may help me would be GREATLY appreciated!

P.S.

Here are the formulas (for your convenience).:

https://www.me.utexas.edu/~me353/lessons/S2_Evaluation/L02_Equivalence/factor_formulas.html

P.P.S.

If you need more information from me, let me know, and I'll provide it.