Use the Internet to find companies that make new homes in the Surprise, Arizona, area.

Look at their websites to find a home y

limit - cost is no problem. When you have found the house you like, fill in the chart below, in the yellow cells.

Maker

Model

Cost

Payment for
30 years at 6%

Now, calculate the loan cost using slightly different data.

Maker

Model

Cost

Payment for
15 years at 6%

How much did you really pay for

the house after 30 years?
(monthly pmt X 12 X 30)

How much did you really pay

for the house after 15 years?
(monthly pmt X 12 X 15)

The total cost after 30 years was (F9):

The total cost after 15 years was (F16):

=PMT(rate,nper,pv,fv,type)
For a more complete description of the arguments in PMT, see the PV function.

Rate is the interest rate for the loan.

Nper is the total number of payments for the loan.
Pv is the present value, or the total amount that a series of future payments is worth now; also known as
principal.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted
assumed to be 0 (zero), that is, the future value of a loan is 0.

. Look at their websites to find a home you would like to own. The sky is the
w, in the yellow cells.

uch did you really pay for

se after 30 years?
hly pmt X 12 X 30)

uch did you really pay

house after 15 years?
hly pmt X 12 X 15)

How much interest

do you pay? (30 yr)
(total cost with interest minus house cost)

How much interest

do you pay? (15 yr)
(total cost with interest minus hose cost)

PV function.

payments is worth now; also known as the

he last payment is made. If fv is omitted, it is