You Pay 20% Down on a Home with a Purchase

question 77

Essay

You pay 20% down on a home with a purchase price of $150,000.The bank will loan you the remaining balance at 6.84% APR.You have an option to make annual payments with a 20-year payment schedule.What is the annuity payment under the annual plan? Is this a better deal than an option to make a monthly plan of payments? Explain in terms of the effective cost of borrowing.

Analyze the economic implications of pricing and budgeting decisions on creative projects.

Understand the economic and mathematical principles behind efficient resource allocation decisions in political and business contexts.

Understand how production functions are used to calculate total costs in specific business scenarios.

Calculate average variable costs based on given total costs and production output.

---

Definitions:

Peritoneum

A serous membrane lining the cavity of the abdomen and covering the abdominal organs, providing support and reducing friction.

Pericardium

The double-layered sac containing the heart and the roots of the great vessels, providing protection and support to the heart.

Thyroid Cartilage

A large cartilage that forms the anterior wall of the larynx and provides support and protection; commonly known as the Adam's apple.

Cricoid Cartilage

The ring-shaped cartilage of the larynx, located below the thyroid cartilage, serving as a point of attachment for muscles, ligaments, and membranes involved in opening and closing the airway and in speech production.