The probablility that the end of the world will save you from taking the final in my class are very low indeed.

## Thursday, May 19, 2011

### Error in the answer sheet for Homework 13

It should be FRIDAY AT 5:00 A.M., not Thursday at 5:00 a.m.

Sorry for the screw-up.

Sorry for the screw-up.

## Saturday, May 7, 2011

### Problems involving interest, monthly payments and down payments.

a) A house is selling for $300,000. You have $20,000 to put down, and the rest you will be financing on a 30 year loan at 6.25%. What is your monthly payment, rounded to the nearest penny?

b) A house is selling for $300,000. You have $20,000 to put down, and the rest you will be financing on a 15 year loan at 6.25%. What is your monthly payment, rounded to the nearest penny?

c) You have $30,000 to put down and you can afford payments of $1500 a month for mortgage. How expensive a house can you afford to buy on 30 year loan at 6.25% interest?

d) You have $30,000 to put down and you can afford payments of $1500 a month for mortgage. How expensive a house can you afford to buy on 15 year loan at 6.25% interest?

Answers in the comments.

b) A house is selling for $300,000. You have $20,000 to put down, and the rest you will be financing on a 15 year loan at 6.25%. What is your monthly payment, rounded to the nearest penny?

c) You have $30,000 to put down and you can afford payments of $1500 a month for mortgage. How expensive a house can you afford to buy on 30 year loan at 6.25% interest?

d) You have $30,000 to put down and you can afford payments of $1500 a month for mortgage. How expensive a house can you afford to buy on 15 year loan at 6.25% interest?

Answers in the comments.

## Thursday, May 5, 2011

### correction on homework 12

As Aliah Johnson pointed out correctly in class, the principal P is the list price - down payment. This is the amount being financed. Change the definition of P AND change the definition of monthly payment to Total/12t.

Sorry for the confusion. Practice problems will be posted by tomorrow, May 6.

Sorry for the confusion. Practice problems will be posted by tomorrow, May 6.

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