You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly payments of $216.55. If the interest rate is 6.8% compounded monthly, what would the unpaid balance be immediately after the thirty-fifth payment? What is the equity after the thirty-fifth payment
You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly payments of $216.55. If the interest rate is 6.8% compounded monthly, what would the unpaid balance be immediately after the thirty-fifth payment? What is the equity after the thirty-fifth payment
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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You are considering taking out a loan of $16,000.00 that will be paid back over 8 years with monthly payments of $216.55. If the interest rate is 6.8% compounded monthly, what would the unpaid balance be immediately after the thirty-fifth payment? What is the equity after the thirty-fifth payment?
The unpaid balance would be $.
The equity would be $
Expert Solution
Step 1: Define= Monthly payment
Loans are paid by equal fixed periodic payments that carry the payment of interest and also payment of principal loans amount also.
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