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You are thinking of purchasing a house. The house costs $ 350 comma 000$350,000. You have $ 50 comma 000$50,000 in cash that you can use as a down payment on the​ house, but you need to borrow the rest of the purchase price. The bank is offering a 3030​-year mortgage that requires annual payments and has an interest rate of 6 %6% per year. What will be your annual payment if you sign this​ mortgage?

Answer :

cecylya

Answer:

The annual payment will be 21794,67

Explanation:

M=[tex]P\frac{ r (1+r)^{n} }{(1+r)^{n}-1}[/tex]

M is your  payment.  ( In this case,  annual)

P is the  principal.

r is your annual interest rate

n is your number of payments (the number of years you will be paying the loan)

Replacing,

The principal is house cost $350,000 minus the down payment (50000)

P=350000-50000=300000

r=0,06

n=30

M=[tex]300000\frac{ 0.06 (1+0.06)^{30} }{(1+0,06)^{30}-1}[/tex]

M=[tex]300000\frac{ 0.06 (1.06)^{30} }{(1,06)^{30}-1}[/tex]

M=[tex]300000\frac{ 0,0636}{0,9433}[/tex]

M=21794,67

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