Question:

You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer

Last updated: 8/10/2022

You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer

You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a 10-year loan, charging 5.11% APR, compounded monthly, and requiring monthly payments of $505. (Assume the value of the land is still $54,000. Round each answer to the nearest dollar.) (a) Assuming that you put some money down, what was your original loan amount (in dollars)? (b) What is the outstanding balance (in dollars) on your loan after making 4 years of payments? (c) How much equity (in dollars) do you have in the garden after 4 years?