A 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to be paid off by monthly payments, at the end of each month. a. If the loan is to be paid off after 15 years, compute: 1) the monthly payment 2) the remaining balance after 5 and 10 years of payments 3) the total interest paid throughout the life of the loan. b. If the loan is to be paid off after 30 years, compute: 1) the monthly payment 2) the remaining balance after 10 and 20 years of payments 3) the total interest paid throughout the life of the loan.
A 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to be paid off by monthly payments, at the end of each month. a. If the loan is to be paid off after 15 years, compute: 1) the monthly payment 2) the remaining balance after 5 and 10 years of payments 3) the total interest paid throughout the life of the loan. b. If the loan is to be paid off after 30 years, compute: 1) the monthly payment 2) the remaining balance after 10 and 20 years of payments 3) the total interest paid throughout the life of the loan.
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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A 200,000 dollar loan is taken out. Interest is 6 percent nominal, converted monthly. The loan is to be paid off by monthly payments, at the end of each month.
a. If the loan is to be paid off after 15 years, compute:
1) the monthly payment
2) the remaining balance after 5 and 10 years of payments
3) the total interest paid throughout the life of the loan.
b. If the loan is to be paid off after 30 years, compute:
1) the monthly payment
2) the remaining balance after 10 and 20 years of payments
3) the total interest paid throughout the life of the loan.
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