a. The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.53% per month. What is the amount of your monthly payment if you take this loan? b. Suppose you take the 30-year mortgage described in part (a).
a. The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.53% per month. What is the amount of your monthly payment if you take this loan? b. Suppose you take the 30-year mortgage described in part (a).
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
Related questions
Question
You have just made an offer on a new home and are seeking a mortgage. You need to borrow
$620,000.
a. The bank offers a
30-year
mortgage with fixed monthly payments and an interest rate of
0.53%
per month. What is the amount of your monthly payment if you take this loan?b. Suppose you take the
30-year
mortgage described in part
(a).
How much will you still owe on the mortgage after
10
years?a. The bank offers a
30-year
mortgage with fixed monthly payments and an interest rate of
0.53%
per month. What is the amount of your monthly payment if you take this loan?Your monthly payment will be
$nothing.
(Round to the nearest cent.)b. Suppose you take the
30-year
mortgage described in part
(a).
How much will you still owe on the mortgage after
10
years?The remaining loan amount will be
$nothing.
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