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.
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.
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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I need the solution of question 20. Please show the work.
Transcribed Image Text:-years.
For Problems 17-24, assume you get a 30-year $90,000 mortgage loan at
7.25% interest.
16
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.
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