I need help figuring out where I went wrong.

Question: Emily is purchasing a house for $185000 that appreciates at a rate of about 1.5% per year. She will finance this purchase with a 15-year mortgage at an interest rate of 3.9%, compounded semi-annually, with monthly payments, where she is required to make a 10% down payment. If she sells the house after 5 years at market value, what will be her final cost after the sale of the house?

First I figures out that the down payment would = $18500.00

So the PV = $166500.00

Next I input the info:

PV = 166500 Payments = ? FV = 0 Rate = 3.9 Periods = 180 Compounding = Semi-Annually

Input that and the payments = $1220.65

To calculate the amount paid after 5 years, I do: payment amount x years x # of payments.

So $1220.65 x 5 x 60 = $366.195.00

Then I change the # of periods in the app I use to 60 instead of 300 to find the amount paid. Which = $121 310.61

Add them all together and it = $506005.61

Next I find the amount of the house currently because of appreciation.

185000(1+0.015)^5 = $199297.54

Minus the two which = $306708.07

Am I missing something or doing something wrong?

Answer in book: $13752.05

  • $\begingroup$ Didn't you notice that the question came out formatted poorly, not looking like you intended it to? Newlines in the input don't translate to newlines in the formatted text. This also might help you with the formulas: math.stackexchange.com/help/notation $\endgroup$
    – David K
    Feb 3, 2019 at 21:20
  • $\begingroup$ You should try to see if the result of each step is reasonable. Why would someone pay over $\$366000$ on a loan of $\$166500$ in just $5$ years with an annual interest rate of less than $4$ percent? $\endgroup$
    – David K
    Feb 3, 2019 at 21:24

1 Answer 1


What I was doing wrong was putting 60 payments instead of 12. Making the amount paid incorrect. After switching that, and doing everything the same I got the correct answer.


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