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Joe takes out a home loan for $100,000. It will be repaid with 360 monthly installments beginning at the end of the first month. The nominal interest rate convertible monthly, ¹2) = 5.00% a) What is the size of the monthly payment? b) What is the amount of principal paid in the seventh payment according to the original amortization schedule? c) Assume that Joe actually pays an additional $100 every month (that is, he pays the amount found in part a) plus $100. His last payment will be smaller than the typical payment. Find the time and amount of his final payment.

Joe takes out a home loan for $100,000. It will be repaid with 360 monthly installments beginning at the end of the first month. The nominal interest rate convertible monthly, ¹2) = 5.00% a) What is the size of the monthly payment? b) What is the amount of principal paid in the seventh payment according to the original amortization schedule? c) Assume that Joe actually pays an additional $100 every month (that is, he pays the amount found in part a) plus $100. His last payment will be smaller than the typical payment. Find the time and amount of his final payment.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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a b and c please

Joe takes out a home loan for $100,000. It will be repaid with 360 monthly installments beginning at the end of the first month. The nominal interest rate convertible monthly, ¹2) = 5.00% a) What is the size of the monthly payment? b) What is the amount of principal paid in the seventh payment according to the original amortization schedule? c) Assume that Joe actually pays an additional $100 every month (that is, he pays the amount found in part a) plus $100. His last payment will be smaller than the typical payment. Find the time and amount of his final payment.
Transcribed Image Text:Joe takes out a home loan for $100,000. It will be repaid with 360 monthly installments beginning at the end of the first month. The nominal interest rate convertible monthly, ¹2) = 5.00% a) What is the size of the monthly payment? b) What is the amount of principal paid in the seventh payment according to the original amortization schedule? c) Assume that Joe actually pays an additional $100 every month (that is, he pays the amount found in part a) plus $100. His last payment will be smaller than the typical payment. Find the time and amount of his final payment.
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