After moving to Boston, Massachusetts, USA, Larry Winters borrowed $1,000,000 for a thirty year mortgage at a rate of 3.3% per annum. (His bank uses the US convention of quoting mortgage rates on a compounded monthly basis.) Larry will pay an equal amount each month, starting one month from now, for 30 years. His final payment will be exactly 30 years (or 360 months) from now. How large is Larry’s monthly mortgage payment?
After moving to Boston, Massachusetts, USA, Larry Winters borrowed $1,000,000 for a thirty year mortgage at a rate of 3.3% per annum. (His bank uses the US convention of quoting mortgage rates on a compounded monthly basis.) Larry will pay an equal amount each month, starting one month from now, for 30 years. His final payment will be exactly 30 years (or 360 months) from now. How large is Larry’s monthly mortgage payment?
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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After moving to Boston, Massachusetts, USA, Larry Winters borrowed $1,000,000 for a thirty year mortgage at a rate of 3.3% per annum. (His bank uses the US convention of quoting mortgage rates on a compounded monthly basis.) Larry will pay an equal amount each month, starting one month from now, for 30 years. His final payment will be exactly 30 years (or 360 months) from now. How large is Larry’s monthly mortgage payment?
(Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
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