Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after the purchase of the house.  a) How much are Max’s monthly payments?  b) How much of the 300th payment goes to principal and how much goes to interest?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 15E
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13) Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after the purchase of the house. 

a) How much are Max’s monthly payments? 

b) How much of the 300th payment goes to principal and how much goes to interest?

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