9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments. Outstanding balance Monthly Interest payment $976.34 $976.34 paid $609.36 $404.73 Principal paid $366.97 $571.61 25 $171 204.93 $113 382.65 150 a) For each payment, determine what percent of the payment is interest. b) For each payment, determine what percent of the mortgage has been paid off. c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?
9. Jared will repay a mortgage over 25 years. This table shows 2 of the Раyment number payments. Outstanding balance Monthly Interest payment $976.34 $976.34 paid $609.36 $404.73 Principal paid $366.97 $571.61 25 $171 204.93 $113 382.65 150 a) For each payment, determine what percent of the payment is interest. b) For each payment, determine what percent of the mortgage has been paid off. c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?
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:9. Jared will repay a mortgage over 25 years. This table shows 2 of the payments.
Payment
number
Monthly
Interest
Principal
paid
$366.97
$571.61
Outstanding
balance
раyment
$976.34
$976.34
paid
$609.36
$404.73
25
$171 204.93
$113 382.65
150
For each payment, determine what percent of the payment is interest.
b) For each payment, determine what percent of the mortgage has been paid off.
c) Why do the interest paid decreases and the principal paid increases over the life of the mortgage?
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