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
Hello! I need your help with the questions attached. They are all related questions so I cannot divede them one by one. I will be so happy if you solve them in once. Thank you !
Transcribed Image Text:For Problems 17-24, assume you get a 30-year $90,000 mortgage loan at
7.25% interest.
17. Calculate the monthly payment (PI).
18. Based on making 360 payments of $613.96, what is the total interest over
the 30 years?
19. Use your amortization registers to calculate (a) interest for the entire 30
years and (b) balance after 360 payments of $613.96.
20. Compare the total interest of Problem 18 with the total interest of
Problem 19. If there is a difference, explain which answer is correct, and
why.
21. After making payments for 10 years, what is your balance?
22. After 10 years, you have made 1/3 of the payments. Why isn’t 1/3 of the
loan balance paid off?
23. How many months will be left on the loan when the 1/3 of the balance is
repaid?
24. How many years will it take for 1/3 of the loan balance to be repaid?
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