You Pay 20% Down on a Home with a Purchase

question 33

Essay

You pay 20% down on a home with a purchase price of $180,000.Your bank will loan the remaining balance of $144,000 at 7% APR.You have an option to make annual payments or monthly payments on the loan.Both options have a 30-year payment schedule.What is the annuity payment under the annual plan? What is the annuity payment under the monthly plan?

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Definitions:

Conduction Hearing Loss

A less common form of hearing loss, caused by damage to the mechanical system that conducts sound waves to the cochlea.

Middle Ear

The chamber between the eardrum and cochlea containing three tiny bones (malleus, incus, and stapes) that concentrate the vibrations of the eardrum on the cochlea’s oval window.

Cochlear Implant

A device for converting sounds into electrical signals and stimulating the auditory nerve through electrodes threaded into the cochlea.

Electrical Signals

Pulses of electric current that transmit information within the nervous system and between electronic devices.