Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20 years at the interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan. If Tara makes a lump sum payment (in addition to the periodic regular repayment) of $200,000 one year after she purchased this house (assuming no penalty for early payment). Suppose that the interest rate remains the same one year later, and that she continues to repay her loan (interest and principal) periodically at the same annuity repayment amount calculated in part (a monthly loan amortization), how long will it take to fully repay the remaining balance? Show all work clearly. Briefly compare the your answer with the initial mortgage loan period in part (a monthly loan amortization).
Tara has just bought a house for $930,000 with a 30% down payment and a 70% mortgage loan for 20 years at the interest rate of 2.19%, compounded monthly. She is scheduled to repay interest and principal every month over the loan period unless she sells the house at some point and fully pay off the loan.
If Tara makes a lump sum payment (in addition to the periodic regular repayment) of $200,000 one year after she purchased this house (assuming no penalty for early payment). Suppose that the interest rate remains the same one year later, and that she continues to repay her loan (interest and principal) periodically at the same
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