The Bautistas sign a mortgage for $50,000 to be amortized over 20 years with a term of 5 years at 11% c.m. with equal monthly payments. On the date of the 19th payment, they make an additional payment of $25,000 subject to a penalty clause requiring a penalty of three times one month's interest on the prepaid principal. Find the balance at the end of the 5 year term.

The Bautistas sign a mortgage for $50,000 to be amortized over 20 years with a term of 5 years at 11% c.m. with equal monthly payments. On the date of the 19th payment, they make an additional payment of $25,000 subject to a penalty clause requiring a penalty of three times one month's interest on the prepaid principal. Find the balance at the end of the 5 year term.

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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