Mr. Herymann bought a house for Rp. 500 million on credit for 5 years. Bank BNI offers mortgages with an interest rate of 7% per year. If Mr. Hery is required to pay a down payment of 20%, then: a. How many installments will Mr. Hery pay from KPR BNI every month? b. With an annuity interest scheme, show the payment schedule (principal, interest, monthly total) in the table)! c. To get a total payment (principal plus interest) equal to #b above, how much flat interest should be charged if the loan period and value are the same? Make a table/schedule of payments with the flat interest! (hint: you can use excel solver to find the flat interest)
Mr. Herymann bought a house for Rp. 500 million on credit for 5 years. Bank BNI offers mortgages with an interest rate of 7% per year. If Mr. Hery is required to pay a down payment of 20%, then: a. How many installments will Mr. Hery pay from KPR BNI every month? b. With an annuity interest scheme, show the payment schedule (principal, interest, monthly total) in the table)! c. To get a total payment (principal plus interest) equal to #b above, how much flat interest should be charged if the loan period and value are the same? Make a table/schedule of payments with the flat interest! (hint: you can use excel solver to find the flat interest)
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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Question
Mr. Herymann bought a house for Rp. 500 million on credit for 5 years. Bank BNI offers mortgages with an interest rate of 7% per year. If Mr. Hery is required to pay a down payment of 20%, then:
a. How many installments will Mr. Hery pay from KPR BNI every month?
b. With an annuity interest scheme, show the payment schedule (principal, interest, monthly total) in the table)!
c. To get a total payment (principal plus interest) equal to #b above, how much flat interest should be charged if the loan period and value are the same? Make a table/schedule of payments with the flat interest! (hint: you can use excel solver to find the flat interest).
Expert Solution
Step 1
Mortgages:
When a house is purchased on credit, the home buyer is required to contribute a certain amount towards the purchase of the house, which is known as the down payment.
The loan value or the mortgage value is the difference between the purchase price and the down payment.
This mortgage is usually repaid with equal monthly installments made over the entire loan period.
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