Kimiko signed a mortgage requiring payments of ​$203.85 at the end of every month for 4 years at 6.1% compounded monthly. ​(a) How much was the original mortgage​ balance? ​(b) If Kimiko missed the first 7 ​payments, how much would she have to pay after 8 months to bring the mortgage payments up to​ date? ​(c) How much would Kimiko have to pay after 8 months to pay off the mortgage​ (assuming she missed all the​ payments)?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Kimiko signed a mortgage requiring payments of
​$203.85
at the end of every
month
for
4
years at
6.1%
compounded monthly.
​(a) How much was the original mortgage​ balance?
​(b) If Kimiko missed the first
7
​payments, how much would she have to pay after
8
months to bring the mortgage payments up to​ date?
​(c) How much would Kimiko have to pay after
8
months to pay off the mortgage​ (assuming she missed all the​ payments)?
​(d) If the mortgage were paid off after
8
​months, what would the total interest cost​ be?
​(e) How much of the total interest cost is additional interest because of the missed​ payments?
​(a) The original mortgage balance was
​$nothing.
​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)
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