Some friends tell you that they paid $25,000 down on a new house and are to pay $525 per month for 30 yrs. If interest is 7.8% compounded monthly, what was the selling price of the house? How much interest will they pay in 30 years?
I began by adding 25,000 + 189,000 (I multipled 525 by 30 years) ... The answer I received is 214,000
i = .0065
m = 12
t = 30
n = 360
214,000(1 - (1.0065)^-360/.0065 = 29,727,569.02 ... Except the back of the book that has the answer says it comes out to $97,929.78 .... SO what am I doing wrong??
I began by adding 25,000 + 189,000 (I multipled 525 by 30 years) ... The answer I received is 214,000
i = .0065
m = 12
t = 30
n = 360
214,000(1 - (1.0065)^-360/.0065 = 29,727,569.02 ... Except the back of the book that has the answer says it comes out to $97,929.78 .... SO what am I doing wrong??