Five years ago you borrowed money to purchase a house under the following terms: Loan Amount $270,000 Term: 30 years, with monthly payments Contractual Interest Rate: 4.45% Your personal market rate of interest (for the risks you pose as a borrower) is 5%. How much principal did you repay in the fourth year of the loan? [Round your monthly payment to dollars and cents when you do your subsequent calculations; show your answer in dollars and cents]

Five years ago you borrowed money to purchase a house under the following terms: Loan Amount $270,000 Term: 30 years, with monthly payments Contractual Interest Rate: 4.45% Your personal market rate of interest (for the risks you pose as a borrower) is 5%. How much principal did you repay in the fourth year of the loan? [Round your monthly payment to dollars and cents when you do your subsequent calculations; show your answer in dollars and cents]

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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