Determine when the balance will be below $75,000. Determine when the balance will be paid off. Determine the interest expense when the loan is paid.(find the total paid, and subtract 120,000 from it).
Determine when the balance will be below $75,000. Determine when the balance will be paid off. Determine the interest expense when the loan is paid.(find the total paid, and subtract 120,000 from it).
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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Question
Jim and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years (360 months) to purchase a home. Their monthly payment is determined to be $758.48.
- A recursive formula for their balance after each monthly payment has been made.
- A determination of Jim and Joan's balance after the first payment. Don't forget the interest affecting their payment
- create a table showing their balance after each monthly payment.
- Determine when the balance will be below $75,000.
- Determine when the balance will be paid off.
- Determine the interest expense when the loan is paid.(find the total paid, and subtract 120,000 from it).
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