Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 6.5%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.25 % . What was the monthly payment on the original 6.5% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 4.25% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house?
Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 6.5%. This year (exactly 10 years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.25 % . What was the monthly payment on the original 6.5% mortgage? What was the remaining balance after 10 years (the amount they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the refinance 4.25% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total interest will they pay over the full 40 years the Jacksons have a loan for the house?
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:Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $170,000 at 6.5%. This year (exactly 10
years later) they refinanced the house, taking out a new 30 year mortgage for the remaining balance at 4.25 % . What
was the monthly payment on the original 6.5% mortgage? What was the remaining balance after 10 years (the amount
they then refinanced)? How much interest did they pay during those first 10 years? What is the monthly payment on the
refinance 4.25% mortgage? How much interest will they pay over the 30 year term of the refinance? How much total
interest will they pay over the full 40 years the Jacksons have a loan for the house?
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