Suppose you bought a house for 30,000,000 by paying 10% down payment. Make Amortization table by using this information. Assuming there is no fees and payment is on annual basis. 1. Original Interest rate is 10% for first two years. 2. Then next two years Interest rate is 8% 3. Then for rest of the period Interest rate drops to 6% 4. You need to pay every year original payment as you paid for 10% interest Amortize it for 15 year and see how many years it will take for you to finish the mortgage?
Suppose you bought a house for 30,000,000 by paying 10% down payment. Make Amortization table by using this information. Assuming there is no fees and payment is on annual basis. 1. Original Interest rate is 10% for first two years. 2. Then next two years Interest rate is 8% 3. Then for rest of the period Interest rate drops to 6% 4. You need to pay every year original payment as you paid for 10% interest Amortize it for 15 year and see how many years it will take for you to finish the mortgage?
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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Transcribed Image Text:Suppose you bought a house for 30,000,000 by paying 10%
down payment. Make Amortization table by using this
information. Assuming there is no fees and payment is on
annual basis.
1. Original Interest rate is 10% for first two years.
2. Then next two years Interest rate is 8%
3. Then for rest of the period Interest rate drops to 6%
4. You need to pay every year original payment as you
paid for 10% interest
Amortize it for 15 year and see how many years it will take
for you to finish the mortgage?
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