Mathematics
: asked on layseapoole

26.09.2020

Round your answer to the nearest cent.

Do NOT round until you have calculated the final answer.

Question 2 - If Bobby takes out a mortgage for 30 years at an interest rate of 4% and his monthly repayments are $835.48, what is the principal loan amount?

Round your answer to the nearest ten dollars.

Do NOT round until you have calculated the final answer.

Question 3 - Ryan wishes to purchase a new boat and can afford monthly payments of up to $900 per month. Finance is available, and the terms are that the loan lasts for 8 years and the annual interest rate is 10%. What is the maximum price for a boat that Ryan's budget can afford?

Round your answer to the nearest hundred dollars.

Do NOT round until you have calculated the final answer.

1

01.10.2023, solved by verified expert

Unlock the full answer

1 students found this answer helpful

**Answer:**

**Step-by-step explanation:**

**Note - Since you have given multiple questions to solve, I will solve the first question for you. To get any particular question solved, please specify the question.**

**1) **

To calculate Tom's monthly mortgage payments, we can use the formula for a fixed-rate mortgage payment, which is:

M = P.r.(1+r)^n / [ (1+r)^n - 1]

Where:

*M* is the monthly payment

*P* is the principal amount (the remaining property value after the deposit)

*r* is the monthly interest rate (annual interest rate divided by 12 months)

*n* is the total number of payments (number of years multiplied by 12 months)

Given:

Property value (*P*) after the deposit: $300,000 - (0.25 * $300,000) = $225,000

Annual interest rate (*r*): 2%

Number of years (*n*): 25 years

First, calculate the monthly interest rate (*r*) by dividing the annual interest rate by 12:

*r*=2% / 12 =0.02/12=0.001667

Next, calculate the total number of payments (*n*):

n=25 years×12 months/year=300 months*n*=25 years×12 months/year=300 months

Now, plug these values into the mortgage payment formula:

*M*=$225,000 x 0.001667x (1+0.001667)^300 / [(1+0.001667)^300−1]

Calculating this expression will give us Tom's monthly mortgage payment: *M*≈$963.96

So, Tom's monthly mortgage payment will be approximately **$963.96 **when rounded to the nearest cent.

Studen helps you with homework in two ways: