w much interest will you save, what date will the entire loan get paid how much was the total interest payment what is the loan balance on year 12 ? how much taxes will you save, how much was the total payment of the entire loan?

w much interest will you save, what date will the entire loan get paid how much was the total interest payment what is the loan balance on year 12 ? how much taxes will you save, how much was the total payment of the entire loan?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Loan: $200,000

Term: 30 years

Interest rate: 3.5%

Variable rate: 7 years fixed interest (but after 7 years assume the variable rate goes up by .25%)

If you pay an extra $350 a month and pay $35,000 additional payment on the 85th month (or right after 7 years)

how much interest will you save,

what date will the entire loan get paid

how much was the total interest payment

what is the loan balance on year 12 ?

how much taxes will you save,

how much was the total payment of the entire loan?

Tax Rate: No Tax Rate

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