In today's class, we formed five groups and solved problems together about purchasing a home for us to understand the things that we were not clear of and to allow others our ideas on how to solve that certain problem.
This was the first problem that we worked on in our groups...
First, list all the additional expenses that the Dirkson family had in purchasing a home.
Appraisal $ 125.00
Survey $ 300.00
Insurance $ 325.00
Taxes -> (2125/12) * 7 = $ 1,239.58
Dry wall -> (650/2) = $ 325.00
Washer & Dryer $ 920.00
Moving Expenses $ 320.00
Legal Fees $ 965.00
Morting $ 1,437.50
Total Cost $ 5,957.08 -> The total cost the Dirkson family had in purchasing a home.
The next problem was...
- To calculate the monthly payment, we can use the Finance Application in our TI-83 calculator, having N=300 which is 12 * 25, 7.25% as the interest rate, $121,000 as your principal value, and the compounding periods per year is 2 because it's Canadian Mortgage, then find the amount of payment every month. The monthly payment is $866.26.
- Multiply the monthly payment to the total number of payments for 25 years.
$866.26 * 300 = $259,878 -> This is the total amount paid for the mortgage.
- To find the total amount of interest paid when mortgage is repaid, subtract the mortgage from the total amount paid for the mortgage.
$259,878 - $121,000 = $138,878
- To determine the monthly payment, we can again use our calculator. and the monthly payment is $948.52.
- The total amount paid for the mortgage is calculated by multiplying the amount of monthly payment to 240 which is the product of 12 * 20. The total amount is $227,644.80.
- The total amount of the interest paid is $106,644.80. we got this by subtracting the required mortgage from the total amount of mortgage.
- By repaying the mortgage in 20 years instead of 25 years, the Jamison family saves $32,233.20.
The next scribe is Chris...
No comments:
Post a Comment