1. You plan to purchase a $100,000 house using a 30-ycar mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. (LG 7-4) a. Calculate your monthly payments on this mortgage. b. Calculate the amount of intercst and, separately, princi- pal paid in thc 25th payment. e. Calculate the amount of interest and, separately, princi- pal paid in the 225th payment.
1. You plan to purchase a $100,000 house using a 30-ycar mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. (LG 7-4) a. Calculate your monthly payments on this mortgage. b. Calculate the amount of intercst and, separately, princi- pal paid in thc 25th payment. e. Calculate the amount of interest and, separately, princi- pal paid in the 225th payment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:You plan to purchase a S100,000 house using a 30-ycar
mortgage obtained from your local credit union. The
mortgage rate offered to you is 8.25 percent. You will
make a down payment of 20 percent of the purchase price.
1.
(LG 7-4)
a. Calculate your monthly payments on this mortgage.
b. Calculate the amount of interest and, separately, princi-
pal paid in thc 25th payment.
e. Caleulate the amount of interest and, separately, princi-
pal paid in the 225th payment.
d. Calculate the amount of interest paid over the life of this
mortgage.
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