Question

Please help!!

Stephanie finances $423,000 with a 20/5 balloon mortgage at 4.45%. How much will she pay for principal and interest over the life of the loan?

Answer 1

Choices?

Answer 2

5*12 payment of a fixed, 20 year mortage, plus the balance remaining after the 5 years are up ....

Answer 3

The answer I believe is $509,378.67, but I am not sure.

Answer 4

P=423000(1+.0445/12)^(20*12)(1-(1+.0445/12))/(1-(1+.0445/12)^(20*12))

http://www.wolframalpha.com/input/?i=423000%281%2B.0445%2F12%29%5E%2820*12%29%281-%281%2B.0445%2F12%29%29%2F%281-%281%2B.0445%2F12%29%5E%2820*12%29%29

60 times that is about 159882.23

add in the balance remaining

Answer 5

which we get as ... 290599.19

http://www.wolframalpha.com/input/?i=423000%281%2B.0445%2F12%29%5E%2820*5%29-%28423000%281%2B.0445%2F12%29%5E%2820*12%29%281-%281%2B.0445%2F12%29%29%2F%281-%281%2B.0445%2F12%29%5E%2820*12%29%29%29%281-%281%2B.0445%2F12%29%5E%2820*5%29%29%2F%281-%281%2B.0445%2F12%29%29

Answer 6

Hold on ill give you the choices

Answer 7

total paid out is 450481.42

Answer 8

$508,077.56
$509,378.67
$510,674.71
$505,422.01

Answer 9

once i account for errors, mercedes is good

Answer 10

Glad I could help you!!! :)

Answer 11

i prolly should stop relying on the wolf to calculate my typos :)