Vivien wants to buy a house. The house she wants is listed for $300,000, and she wants to avoid PMI insurance. She can get a fixed-rate mortgage at 4.25% for 30 years. Don’t worry about taxes and insurance for any of these questions, just keep in mind that those would need to be considered as well.
(a) What down payment will she need?
(b) If Vivien makes her down payment and takes out the loan described, what will be her monthly payment?
(c) If Vivien makes her down payment and takes out the loan described, what will be the total cost of the house?

A=$60,000; B= $1,180.66 C=$485,037.60

Explanation:

A. down payment required to avoid PMI insurance is 20%

Therefore 20% of $300,000

=$60,000

B.

Price = $300,000

Down Payment = $60,000.00

Present Value PV = -$240,000 (remaining debt after down payment),

Interest Rate I = 4.25% 12= 0.354% (for each month )

Number of Periods N = 30 × 12=360

Future Value) FV = $0

Periodic Payment PMT= iPV/ (1 - 1+ i)^-n

$1,180.66

C.

Price = $300,000

Down Payment = $60,000.00

Present Value PV = -$240,000 (remaining debt after down payment),

Interest Rate I = 4.25% 12= 0.354% (for each month )

Number of Periods N = 30 × 12=360

Future Value) FV = $0

Periodic Payment PMT= $1,180.66

total cost of the house = (PMT × N)+ down payment

$1,180.66 × 360 months = $425,037.6

$425,037.6+$60,000

=$485,037.60

answer; ///i believe the correct answer is(e) complementary to each other;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know