On January 1, 2003 Mike took out a 30-year mortgage loan in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by level end-of-month payments with the first payment on January 31, 2003. b. What would be Mike's outstanding balance at the end of December 31st, 2007? Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007. c. Calculate Mike's updated outstanding balance at the end of December 31st, 2007. After this, Mike continues with his regular monthly payments of $1,199, except for the last payment (which is a drop payment) d. Calculate the drop payment.
On January 1, 2003 Mike took out a 30-year mortgage loan in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by level end-of-month payments with the first payment on January 31, 2003.
b. What would be Mike's outstanding balance at the end of December 31st, 2007?
Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007.
c. Calculate Mike's updated outstanding balance at the end of December 31st, 2007.
After this, Mike continues with his regular monthly payments of $1,199, except for the last payment (which is a drop payment)
d. Calculate the drop payment.
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