5. Joseph and three friends bought a $260,000 house close to the university at the end of August last year. At that time, they put down a deposit of $10,000 and took out a mortgage for the balance. Their mortgage payments are due at the end of each month (September 30, last year was the date of the first payment) and are based on the assumption that Joseph and friends will take 20 years to pay off the debt. Annual nominal interest is 12 percent, compounded monthly. It is now February. Joseph and friends have made all their fall term payments and have just made the January 31 payment for this year. How much do they still owe?
5. Joseph and three friends bought a $260,000 house close to the university at the end of August last year. At that time, they put down a deposit of $10,000 and took out a mortgage for the balance. Their mortgage payments are due at the end of each month (September 30, last year was the date of the first payment) and are based on the assumption that Joseph and friends will take 20 years to pay off the debt. Annual nominal interest is 12 percent, compounded monthly. It is now February. Joseph and friends have made all their fall term payments and have just made the January 31 payment for this year. How much do they still owe?
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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5. Joseph and three friends bought a $260,000 house close to the university at the end of August last year. At that time, they put down a deposit of $10,000 and took out a mortgage for the balance. Their mortgage payments are due at the end of each month (September 30, last year was the date of the first payment) and are based on the assumption that Joseph and friends will take 20 years to pay off the debt. Annual nominal interest is 12 percent, compounded monthly. It is now February. Joseph and friends have made all their fall term payments and have just made the January 31 payment for this year. How much do they still owe?
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