# Dream home

You finally found your dream home. It sells for $120,000 and can be purchased by paying 10% down and financing the balance at an annual rate of 9.6% compounded monthly.

a) How much are your payments if you pay monthly for 30 years?

b) Determine how much would be paid in interest.

c) Determine the payoff after 100 payments have been made.

d) Change the rate to 8.4% and the time to 15 years and calculate the payment.

e) Determine how much would be paid in interest and compare it with the previous interest. (to the nearest dollar)

a) How much are your payments if you pay monthly for 30 years?

b) Determine how much would be paid in interest.

c) Determine the payoff after 100 payments have been made.

d) Change the rate to 8.4% and the time to 15 years and calculate the payment.

e) Determine how much would be paid in interest and compare it with the previous interest. (to the nearest dollar)

### Correct answer:

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#### You need to know the following knowledge to solve this word math problem:

**algebra**- exponential equation
- geometric progression
- expression of a variable from the formula
**arithmetic**- exponentiation
- comparing
**basic functions**- exponential function

#### Units of physical quantities:

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