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QUESTION 6 Suppose you purchase a home and obtain a 15-ycar fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months 1%: P.V: $

QUESTION 6 Suppose you purchase a home and obtain a 15-ycar fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months 1%: P.V: $

Essentials Of Investments
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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whats the answer for number 6
QUESTION 6 Suppose you purchase a home and obtain a 15-ycar fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months 1%: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12
Transcribed Image Text:QUESTION 6 Suppose you purchase a home and obtain a 15-ycar fixed-rate loan of $195,000 at an annual interest rate of 6.0%. a) What is your monthly payment? N: months 1%: P.V: $ PMT: $ F.V: 0 P/Y: 12 C/Y: 12
b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month's payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
Transcribed Image Text:b) Of the first month's mortgage payment, how much is interest? HINT: I=Prt Interest: I=$ c) Of the first month's mortgage payment, how much is applied to the principal? HINT: PMT - Interest Amount Applied to Principal: $ d) How much is your outstanding balance after the first month's payment? HINT: Principal - Amount Applied to Principal Outstanding Balance after first payment: $
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