a. Find the balance owed after 5 years b. Determine the cost of the loan (interest). c. If an extra $100 a month is paid towards the balance find the new number cost of the loan. d. If the interest rate of the loan is doubled to 8.8% does the cost of the loan c e. If the principal of the loan is doubled to $460,000 does the cost of the loan If the term of the loan is doubled to 30 vears does the cost of tbe loan dout
a. Find the balance owed after 5 years b. Determine the cost of the loan (interest). c. If an extra $100 a month is paid towards the balance find the new number cost of the loan. d. If the interest rate of the loan is doubled to 8.8% does the cost of the loan c e. If the principal of the loan is doubled to $460,000 does the cost of the loan If the term of the loan is doubled to 30 vears does the cost of tbe loan dout
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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i need last three requirement ( d,e and f)
Transcribed Image Text:A home is purchased for $230,000 with an amortized loan over 15 years at an interest rate of 4.4%.
Complete an amortized loan schedule in a spread sheet and answer the following questions.
a. Find the balance owed after 5 years
b. Determine the cost of the loan (interest).
c. If an extra $100 a month is paid towards the balance find the new number of payments and the total
cost of the loan.
d. If the interest rate of the loan is doubled to 8.8% does the cost of the loan double? Explain
e. If the principal of the loan is doubled to $460,000 does the cost of the loan double? Explain
f. If the term of the loan is doubled to 30 years does the cost of the loan double? Explain
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