What is the size of the monthly payments

Assignment Help Business Economics

Reference no: EM131245955

Mary Lib purchases a house for $450,000. She makes a down payment of $40,000 at the time of the purchase, and the balance is financed at 6.0% compounded monhly, with monthly payments made over a 10-year period.

a) What is the size of the monthly payments?

b) If the loan period had been 20 years, what would have been the size of the monthly payments?

Reference no: EM131245955

Questions Cloud

Compute the price index : ?Jim's favorite breakfast is two? eggs, 1/5 lb. of? bacon, 1/7 lb. of white? toast, 1/6 can? (16 ounce? can) of frozen concentrate orange? juice, and 1 lb. of grapefruit. The following table contains 1991 and 2001 prices for these five items. Using 1..

Different preferences about medical care and other goods : For a single illness (such as a sore throat and cough), show the demand curves for three different consumers with different preferences about medical care and other goods. Need the demand curves be parallel? Could they ever cross?

Draw supply and demand graph showing the initial equilibrium : A hurricane hits the Gulf Coast and completely shuts down much of the refining capacity for some time. Consider the market for gasoline. Draw supply and demand graph showing the initial equilibrium, any supply and/or demand shift, and new equilibrium..

Wage rate change optimal consumption-leisure combination : Using neo-classical model of labor-leisure choice to answer the following questions. How does an increase in wage rate change the optimal consumption-leisure combination chosen by the worker? State income effect and substitution effect.

What is the size of the monthly payments : Mary Lib purchases a house for $450,000. She makes a down payment of $40,000 at the time of the purchase, and the balance is financed at 6.0% compounded monhly, with monthly payments made over a 10-year period. What is the size of the monthly payment..

Type of exchange-rate system : Explain how the Lourve Accord represented a type of exchange-rate system. What is the principal responsibility of a currency board? What are the three main restrictions on a currency board that make it different from a typical bank?

What is effect of years of schooling on economic development : What is the effect of years of schooling on economic development? Once we control for the quality of education, what happens to the effect of years of schooling on economic development?

About freedom of religion : What was it about freedom of religion in the United States that led to utopian communities and new religions where sexual experimentation was central?

Determine your optimal per unit price : Based on the best available econometric estimates, the market elasticity of demand for your firms product is -2. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $225. Determine ..

User Account

All Pages