Mathematics, 08.08.2019 01:20 nana54muller
Efore the financial crash of 2008, mortgage interest rates were very high – many close to 10%. additionally, down payments were very low. these two factors led to many people getting mortgages when they couldn’t afford them. when people couldn’t pay, their houses were foreclosed (meaning the banks took them back and kicked people out of them). this is essentially what caused the “great recession.” [of course, the banks were practicing predatory lending practices, so it wasn’t really the fault of the people with the loans. anyway, politics
suppose that a family bought a house for $300,000 and made on a 5% down payment. the rest of their mortgage was financed as a 30-year amortized loan with 9.6% annual interest compounded monthly. make an amortization schedule for their mortgage for the first four months of their loan.
payment number principal portion interest portion total payment balance
0
1
2
3
4
how much interest was paid in total on this loan?
Answers: 2
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Efore the financial crash of 2008, mortgage interest rates were very high – many close to 10%. addit...
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