Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Towards Towards Number Balance Payment Payment Interest Principal 1 210,000.00 a. 100.00 1,050.00 822.10 2 100.00 1,045.89 826.21 3 100.00 d. 830.34 4 100.00 1,037.61 5 100.00 1,033.43 b. a. 208,351.69 a. 207,521.35 a. 206,686.86 a. 838.67 Ending Balance 209,177.90 C. 207,521.35 206,686.86 205,848.19
Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Towards Towards Number Balance Payment Payment Interest Principal 1 210,000.00 a. 100.00 1,050.00 822.10 2 100.00 1,045.89 826.21 3 100.00 d. 830.34 4 100.00 1,037.61 5 100.00 1,033.43 b. a. 208,351.69 a. 207,521.35 a. 206,686.86 a. 838.67 Ending Balance 209,177.90 C. 207,521.35 206,686.86 205,848.19
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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Transcribed Image Text:Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra
$100 each month towards the principal. Determine the ending balance after the first month?
Payment Beginning Monthly Extra
Balance
Number
Payment Payment
1
210,000.00
a.
100.00
2
b.
a.
100.00
3
208,351.69
a.
100.00
4
207,521.35
a.
100.00
5
206,686.86 a.
100.00
Towards Towards
Interest Principal
1,050.00
1,045.89
d.
1,037.61
1,033.43
Ending
Balance
822.10 209,177.90
826.21
830.34
e.
838.67
C.
207,521.35
206,686.86
205,848.19
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