question archive ANNUITIES) Tara planned to buy a house but could afford to pay only $12,500 at the end of every 6 months for a mortgage with an interest rate of 4
ANNUITIES) Tara planned to buy a house but could afford to pay only $12,500 at the end of every 6 months for a mortgage with an interest rate of 4
Subject:MathPrice: Bought3
ANNUITIES)
Tara planned to buy a house but could afford to pay only $12,500 at the end of every 6 months for a mortgage with an interest rate of 4.40% compounded semi-annually for 20 years. He paid $23,000 as a down payment.
a)What was the maximum amount he could afford to pay for a house?
b) What was his total investment through the mortgage period (not taking the time-value of money into account)?
c) What was the total amount of interest paid through the mortgage period?
