## Thursday, May 19, 2011

### Remember to study this weekend!

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

### 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.

## 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?