Question

Johnson and Johnson purchased a house for $450000. The had a 35%
down payment and negotiated a four year mortgage at 4:35% amortized over 20
years.
(a) Calculate their monthly payments.
(b) After the four year term was completed, they renegotiated a new term for
six years at 2:15% amortized over 15 years. Determine their new monthly
payments.

Answer 1

Step 1. 450000*.35
Step 2. 450000-157500 = 292500

Answer 2

Ummm. And I don't understand how the rest is phrased...

Answer 3

wow your a hero!

Answer 4

can you please answer the whole thing lol ur a life saver honestly!

Answer 5

http://upload.wikimedia.org/wikipedia/en/math/4/d/3/4d34804b437eb3ad997e46c11a062991.png

Answer 6

Something with that equation. :[

Answer 7

I don't understand how the rest is phrased let me read it again

Answer 8

I don't understand the second part....what does 4:35% mean?

Answer 9

is it 2329.4?

Answer 10

for b?

Answer 11

@_@ I'm confused. for part a. Was it only for a period of 4 years?

Answer 12

wait nvm. over 20 years...but I don't understand that ratio thing

Answer 13

hello? can you reply please

Answer 14

Could you answer my question first lol. I really don't understand how your question is phrased

Answer 15

yes now i can see my computer is messed up sorry

Answer 16

Johnson and Johnson purchased a house for $450000. The had a 35%
down payment and negotiated a four year mortgage at 4:35% amortized over 20
years.
(a) Calculate their monthly payments.
(b) After the four year term was completed, they renegotiated a new term for
six years at 2:15% amortized over 15 years. Determine their new monthly
payments.

Answer 17

@_@ a four year mortgage over 20 years...how does that make sense :[

Answer 18

i know right

Answer 19

First you must define some variables to make it easier to set up:

P = principal, the initial amount of the loan
I = the annual interest rate (from 1 to 100 percent)
L = length, the length (in years) of the loan, or at least the length over which the loan is amortized.
The following assumes a typical conventional loan where the interest is compounded monthly. First I will define two more variables to make the calculations easier:

J = monthly interest in decimal form = I / (12 x 100)
N = number of months over which loan is amortized = L x 12
Okay now for the big monthly payment (M) formula, it is:

J
M = P x ------------------------

1 - ( 1 + J ) ^ -N

I found this on some website: http://www.hughchou.org/calc/formula.html

Answer 20

but I don't know what that 4 year term means...

Answer 21

that is throwing me off