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A family has a mortgage on a home for $295,000, amortizea over 25 years, at all Arn UI 4.5%. The monthly payment on the mortgage is $1,639.71/ If the family makes a $25,000 extra payment at the end of the 4th year of the mortgage, how much interest will they save by the end of the 25-year period of the mortgage?

A family has a mortgage on a home for $295,000, amortizea over 25 years, at all Arn UI 4.5%. The monthly payment on the mortgage is $1,639.71/ If the family makes a $25,000 extra payment at the end of the 4th year of the mortgage, how much interest will they save by the end of the 25-year period of the mortgage?

Essentials Of Investments
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
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1% = N= 300 (25X12) PV = PMT= FV = P/Y = C/Y = d. A family has a mortgage on a home for $295,000, amortizea over 25 years, at all Arn vi 4.5%. The monthly payment on the mortgage is $1,639.71/ If the family makes a $25,000 extra payment at the end of the 4th year of the mortgage, how much interest will they save by the end of the 25-year period of the mortgage? Hint: Assume the monthly payment is adjusted at the end of the 4th year, to keep the original amortization of 25 years. PMT: END BEGIN N = 1% = PV = PMT= FV = 94499016 P/Y= C/Y = PMT: END BEGIN
Transcribed Image Text:1% = N= 300 (25X12) PV = PMT= FV = P/Y = C/Y = d. A family has a mortgage on a home for $295,000, amortizea over 25 years, at all Arn vi 4.5%. The monthly payment on the mortgage is $1,639.71/ If the family makes a $25,000 extra payment at the end of the 4th year of the mortgage, how much interest will they save by the end of the 25-year period of the mortgage? Hint: Assume the monthly payment is adjusted at the end of the 4th year, to keep the original amortization of 25 years. PMT: END BEGIN N = 1% = PV = PMT= FV = 94499016 P/Y= C/Y = PMT: END BEGIN
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