2.11.5: On January 1 of Year 1, Kylie Ramona borrowed $400,000 under a mortgage note payable contract. The annual interest rate on this mortgage is 12% compounded monthly. This is a 15-year, fully-amortizing monthly mortgage. The monthly payments are $4,800.67 and are due at the end of each month, starting on January 31 of Year 1. On January 31 of Year 1, Kylie Ramona decided to pay an extra $5,000.00 on the mortgage, so the total payment on that date was $9,800.67. Kylie Ramona made the regular $4,800.67 payment on February 28 of Year 1. What is the REMAINING BALANCE of the mortgage note payable as of February 28 of Year 1 after the monthly payment is made on that date? Note: The February 28 payment is the SECOND monthly payment. Also note that an extra $5,000.00 was paid on January 31.
2.11.5: On January 1 of Year 1, Kylie Ramona borrowed $400,000 under a mortgage note payable contract. The annual interest rate on this mortgage is 12% compounded monthly. This is a 15-year, fully-amortizing monthly mortgage. The monthly payments are $4,800.67 and are due at the end of each month, starting on January 31 of Year 1. On January 31 of Year 1, Kylie Ramona decided to pay an extra $5,000.00 on the mortgage, so the total payment on that date was $9,800.67. Kylie Ramona made the regular $4,800.67 payment on February 28 of Year 1. What is the REMAINING BALANCE of the mortgage note payable as of February 28 of Year 1 after the monthly payment is made on that date? Note: The February 28 payment is the SECOND monthly payment. Also note that an extra $5,000.00 was paid on January 31.
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:2.11.5: On January 1 of Year 1, Kylie Ramona borrowed $400,000 under a mortgage
note payable contract. The annual interest rate on this mortgage is 12%
compounded monthly. This is a 15-year, fully-amortizing monthly mortgage. The
monthly payments are $4,800.67 and are due at the end of each month, starting on
January 31 of Year 1.
On January 31 of Year 1, Kylie Ramona decided to pay an extra $5,000.00 on the
mortgage, so the total payment on that date was $9,800.67. Kylie Ramona made the
regular $4,800.67 payment on February 28 of Year 1.
What is the REMAINING BALANCE of the mortgage note payable as of February 28
of Year 1 after the monthly payment is made on that date?
Note: The February 28 payment is the SECOND monthly payment. Also note that an
extra $5,000.00 was paid on January 31.
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