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. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007. Determine the date on which Mike will make his last payment (which is a drop payment). (A) July 31, 2013 (B) November 30, 2020 (C) December 31, 2020 (D) December 31, 2021 (E) January 31, 2022 (8)SOA 109: Keep the given data, but calculate (a) the total Mike would pay if he just made the original 30 years of payments, (c) How much does he pay if he makes the extra $10,000 payments at the ends of 2003 through 2007?

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. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007. Determine the date on which Mike will make his last payment (which is a drop payment). (A) July 31, 2013 (B) November 30, 2020 (C) December 31, 2020 (D) December 31, 2021 (E) January 31, 2022 (8)SOA 109: Keep the given data, but calculate (a) the total Mike would pay if he just made the original 30 years of payments, (c) How much does he pay if he makes the extra $10,000 payments at the ends of 2003 through 2007?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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