Question

$PMT = frac{P_0(frac{r}{n})}{1-(1+frac{r}{n})^{-nt}}$ $P_0$ = principal (starting amount), $PMT$ = loan payment, $r$ = interest rate (APR), $t$ = number of years of the loan, $n$ = number of compounding periods in one year You have found your dream home, which is listed for $355,000. You put 15% of the price of the home as a down payment and take out a loan for the remaining cost. The bank offers you a 25-year fixed loan with 4.7% APR compounded monthly. Round all answers to the nearest cent. a. Calculate the principal amount financed (loan amount).

          $PMT = frac{P_0(frac{r}{n})}{1-(1+frac{r}{n})^{-nt}}$

$P_0$ = principal (starting amount),
$PMT$ = loan payment,
$r$ = interest rate (APR),
$t$ = number of years of the loan,
$n$ = number of compounding periods in one year

You have found your dream home, which is listed for $355,000. You put 15% of the price of the home as a down payment and take out a loan for the remaining cost. The bank offers you a 25-year fixed loan with 4.7% APR compounded monthly. Round all answers to the nearest cent.

a. Calculate the principal amount financed (loan amount).

Added by Valerie R.

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