Math 103 Project Based on section 6.4 + Formulas (rev35) Name _____
Complete & turn in this cover sheet (by itself or with other documentation). Show work, keep all digits for calculations but round answers to 2 decimals ($ and ¢)
A house costs $373,200. To get a loan the bank requires 17% down. To simplify (less realistic), closing costs, insurance and other fees are omitted. The purchase is financed with a 33 year fixed rate mortgage.
To personalize this project, the interest rate (as %) is (# of letters in your last name) + 0.(1st digit of SSN)%
Example: Smith = 5 letters, with SSN = 3xx-xx-xxxx, so 5.3% fill in %: __
Fill in the blanks for the a required down payment: $ _____
b amount of the mortgage (loan): $ _____ (show work)
c monthly payment (PMT): $ _____ (fill in p271 formula & show work)
d total $ interest paid: $ _____ ← should be within + or – $100 of the figure (show work) calculated after rounding the PMT to $ and ¢.
Go to a website with amortization capabilities (you may use others than these): mortgagecalculator.org myamortizationchart.com ← (leftside, click on “mortgage calculator”)
www.bankrate.com/calculators.aspx ← (these sites only www.mortgage-calc.com ← work correctly when bretwhissel.net/cgi-bin/amortize ← years = 10, 15, 20 or 30)
and fill out the information (exclude any taxes, points, insurance, loan fees, PMI, etc) to find the monthly payment. Treat the loan as starting on Dec 31, 2020 (the first payment year is 2021)
Show $ and ¢ for all these results (2 decimals): e What is the monthly payment according to the website? $ _____ note: both monthly payment figures (parts “c” & “e”) should match (within + or – $5). If they don’t, recheck the calculations in part c’s formula and the values entered online.
f Click the “Amortization” button and find the loan balance outstanding at the end of year 7: $ ______
For the last 2 questions, all info is the same except the time period is 7 years shorter: g (use the website) what is the new monthly PMT? $ ____ h (show work below) what is the revised total interest paid? $ ____