Question

Joseph and three other friends bought a $260,000 house close to the university at the end of August last year. At that time, they put down a deposit of $20,000 and took out a mortgage for the balance. Their mortgage payments are due at the end of each month (September 30 , last year, was the date of the first payment) and are based Joseph and his friends have made all their fall-term payments and have just made the January 31 payment for this year. How much do they still owe? Click the icon to view the table of compound interest factors for discrete compounding periods when i=0.5%. They will owe $ (Round to the nearest dollar as needed.)

Answer 1

To determine how much Joseph and his friends still owe on their mortgage, we need to consider the initial house price, the down payment, and the mortgage payments they have made so far.Initial House Price: The house they bought was worth $260,000. Down Payment: They made a down payment of $20,000 when they bought the house.

Mortgage Balance: The mortgage balance is the remaining amount after deducting the down payment from the initial house price. So, the mortgage balance is $260,000 - $20,000 = $240,000. Mortgage Payments: Their mortgage payments are due at the end of each month. The first payment was due on September 30 last year. They have made all their fall-term payments and just made the January 31 payment for this year.

To determine the amount Joseph and his friends still owe on their mortgage, we need to consider the initial house price, the down payment, and the mortgage payments they have made so far. By subtracting the total mortgage payments made from the mortgage balance, we can find the amount still owed. However, without the interest rate and compounding period, we cannot calculate the exact amount.