Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi- annually for a 5-year term. The bank calculated their monthly payment should be $2,776. How much interest did they pay in the 2nd year of the mortgage? Question 1 options: $ 1,383.54 $15,955.66 $32, 385.62 $2,770.71 $18,705.03
Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi- annually for a 5-year term. The bank calculated their monthly payment should be $2,776. How much interest did they pay in the 2nd year of the mortgage? Question 1 options: $ 1,383.54 $15,955.66 $32, 385.62 $2,770.71 $18,705.03
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
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Transcribed Image Text:Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from
the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-
annually for a 5-year term. The bank calculated their monthly payment should be $2,776.
How much interest did they pay in the 2nd year of the mortgage? Question 1 options: $
1,383.54 $15,955.66 $32, 385.62 $2,770.71 $18,705.03
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