Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly. a. Convert the interest rate above as the effective interest rate. b. To pay off the mortgage debt within 30 years, how much is his monthly payment (to the nearest cent)? c. Build the amortization schedule based on part b, including the correct final payment to make the final balance equal to zero. d. Paul actually may afford $3400 every month as the mortgage payment. How many years+months will he need to pay off the mortgage? e. Build the amortization schedule based on part d, including the correct final payment to make the final balance equal to zero. f. Find out
Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly. a. Convert the interest rate above as the effective interest rate. b. To pay off the mortgage debt within 30 years, how much is his monthly payment (to the nearest cent)? c. Build the amortization schedule based on part b, including the correct final payment to make the final balance equal to zero. d. Paul actually may afford $3400 every month as the mortgage payment. How many years+months will he need to pay off the mortgage? e. Build the amortization schedule based on part d, including the correct final payment to make the final balance equal to zero. f. Find out
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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Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly.
a. Convert the interest rate above as the effective interest rate.
b. To pay off the mortgage debt within 30 years, how much is his monthly payment (to the nearest cent)?
c. Build the amortization schedule based on part b, including the correct final payment to make the final balance equal to zero.
d. Paul actually may afford $3400 every month as the mortgage payment. How many years+months will he need to pay off the mortgage?
e. Build the amortization schedule based on part d, including the correct final payment to make the final balance equal to zero.
f. Find out
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