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.

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.

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.