If a house costs $130,000 with a 25 year mortgage with a rate of 9.5%, what is the total cost of the house?

The Pink family is buying a $130,000 house with a mortgage. They mortgage is for 25 years at 9.5%. They have $20,000 invested that could be used as a down payment, but since none is needed Mr. Pink does not want to put a payment down. Mrs. Pink however believes they should put one down.

Mr. Pink feels the investment will have an annual return rate of 10% compounded quarterly. What would this investment be after 25 years?

You can search "mortgage calculators" and you should be able to figure it out. Is this homework?

%10/4=%2.5 interest rate (quarterly)
25*4=100 number of quarterly 1n 25 years
2000*(1+%2.5)^100=23627.43
after 25 years he has $23627.43

Mr. Pink should e-mail me, so I could help him explore more loan options... =0)

Tags

　　Startup Capital 　　Sector Fund 　　Seed Money 　　Seed Capital 　　Return Investment 　　Real Money 　　Real Estate Investment 　　Raise Capital

Related information

What investments offer the most lucrative returns?

index mutual funds offer diversification (less risk) and steadily beat managed mutual funds over time (more lucrative returns). They also have a low expense ratio, menaning they are inexpensive to...

Lorenzo can purchase a $4,000 bond for $3,800. If the bond pays quarterly dividends at 8% (stated annual inte

i now you can solve that...

...

Investmentwise?

why you cant. for example if you will invest in stocks they can gain in price for one month , nobody knows that. and if you will invest in bonds for this 5 years you will see return in 6 month. or...

An apartmenthouse has 3 apartments renting for$1000.00 each?

You might have better luck posting this under the homework help section, in education.

...

How risky is investing into a REIT?

Reits are very, very risky. Check out the returns for the last year. It will take a lot of dividends to erase those losses and housing hasn't bottomed yet. If you are smart in this market you ...

What are the investments that earn fastest and highest returns?

Hi, there are lot's of opportunities. You will get the highest return abroad. I'm not a financial guru, but I am getting 40%-50% annual interest. You may e-mail me for advice. Good luc...

I need to find NPV of a project?

The answer is -$2,242.19! get the formula here (I dont have some of the keys/symbols that goes into the formula in my keyboard)

...

Trust Deeds?

Trust deeds are ok but there are factors you nust see to evaluate if it is a good note. One is, Is the note seasoned more than 12 months. The next is have the payments been on time. Next is what is...