Consider a mortgage loan of $940,000 taken at time t=0 at the fixed interest rate of r=0.09 per year. It must be amortized in equal monthly payments for 15 years. a) Set up the difference equation of the model b) What is the amount of each payment? c) How much interest is paid and how much principal in the first payment? d) How much interest is paid and how much principal in the last payment?

Consider a mortgage loan of $940,000 taken at time t=0 at the fixed interest rate of r=0.09 per year. It must be amortized in equal monthly payments for 15 years. a) Set up the difference equation of the model b) What is the amount of each payment? c) How much interest is paid and how much principal in the first payment? d) How much interest is paid and how much principal in the last payment?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

Consider a mortgage loan of $940,000 taken at time t=0 at the fixed interest rate of r=0.09 per year. It must be amortized in equal monthly payments for 15 years.
a) Set up the difference equation of the model
b) What is the amount of each payment?
c) How much interest is paid and how much principal in the first payment?
d) How much interest is paid and how much principal in the last payment?

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