4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is paying $629.81 er month. а) If J.D. sells his house after 10 ye rs, how much must he give the bank to completely pay off the mortgage at the tinic of the 120th payment? b) How much of the first $629.81 payment on the loan is interest?
4. J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000 mortgage on which his is paying $629.81 er month. а) If J.D. sells his house after 10 ye rs, how much must he give the bank to completely pay off the mortgage at the tinic of the 120th payment? b) How much of the first $629.81 payment on the loan is interest?
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
Related questions
Question
Transcribed Image Text:4.
J.D. Homeowner has just bou ght a house with a 20-year, 9%, $70,000
mortgage on which his is paying $629.81 per month.
а)
If J.D. sells his house after 10 ye rs, how much must he give the bank to
completely pay off the mortgage at the tin.c of the 120th
payment?
b)
How much of the first $629.81 payment on the loan is interest?
Expert Solution
Step 1
The PMT function is a type of financial function which helps to determine the total monthly payment paid by taken into consideration the principal value and the interest rate.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education