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the monthly payments? $ 852.09 heir loan balance right after they have made the

the monthly payments? $ 852.09 heir loan balance right after they have made the

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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Jose and Mark plan to purchase a home for $138,000. They will pay 20% down and finance the remainder for 25 years at the APR of 8%, compounded monthly. a) How large are the monthly payments? $ 852.09 b) What will be their loan balance right after they have made their 240th payment? $ 42023.5 c) How much interest will they pay during the 20th year of the loan? $ 52078.1 d) If they were to increase their montly payments by $100, how long would it take to pay off the loan? Give your answer in whole months. 87
Transcribed Image Text:Jose and Mark plan to purchase a home for $138,000. They will pay 20% down and finance the remainder for 25 years at the APR of 8%, compounded monthly. a) How large are the monthly payments? $ 852.09 b) What will be their loan balance right after they have made their 240th payment? $ 42023.5 c) How much interest will they pay during the 20th year of the loan? $ 52078.1 d) If they were to increase their montly payments by $100, how long would it take to pay off the loan? Give your answer in whole months. 87
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