Michael obtains a 30/8 balloon mortgage to finance $425,500 at 6.55%. how much principal and interest will he have already paid when his balloon payment is due?

$259 532  

Step-by-step explanation:

Step 1. Calculate the monthly payments on a 30-year loan.

The formula for the monthly payment (P) on a loan of A dollars that is paid back in equal monthly payments over n months, at an annual interest rate

of r % is

Data:

We must express the interest rate on a monthly basis.

i = 6.55 %/yr = 0.545 83 %/mo = 0.005 4583

A = $425 500

n = 360 mo

Calculation:

P = $2703.46

B. Total Payment (T) after 8 years

T = nP

T = 96 × 2703.46

T = $259 532

Michael will have paid $259 532 at the end of eight years.

(0,-3) see attached graph

step-by-step explanation:

a. to solve the system, graph the two equations.

x = y+3 becomes y=x-3 has m=1/1 and b=-3. start at (0,-3) on the y-axis and plot a point. then move up 1 unit and 1 unit to the right. plot a point and connect.

y=-4x+3 has m =-4/1 and b=-3. start at (0,-3) on the y-axis and plot a point. then move down four units and to the right 1 unit. plot a point and connect.

the solution is the point (x,y) where the two lines intersect. by the graph below it is (0,-3).

b. to solve by substitution, substitute y = -4x-3 into x= y+3

x= (-4x-3) +3

x=-4x

5x=0

x=0

now substitute x = 0 back in to find y.

y= -4(0)-3

y=0-3

y=-3

solution is (0,-3)

c. use elimination by adding the equations together.

x-y=3

4x+y=-3

5x=0

x=0

then substitute into one equation to find y.

y=-4(0)-3

y=-3