Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year amortization. What is the size of the monthly payment? Calculate the principal portion of the 50th payment. Calculate the interest portion of the 100th payment.
Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year amortization. What is the size of the monthly payment? Calculate the principal portion of the 50th payment. Calculate the interest portion of the 100th payment.
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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solve it completely please.
Monthly payments are to be made against an $850,000 loan at 7.25% compounded annually with a 15-year amortization.
- What is the size of the monthly payment?
- Calculate the principal portion of the 50th payment.
- Calculate the interest portion of the 100th payment.
- Calculate how much the principal will be reduced in the third year.
- Calculate the total interest paid in the second year.
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