You plan to borrow $300,000 at a 4% annual interest rate for your mortgage. The terms require you to amortize the loan with 30 year equal end-of-month payments (i.e., totally 30*12=360 payments). (1) In Year 3 (i.e., payment #25 - Payment #36), how much principal and interest will be paid respectively? (2) In Year 8, how much principal and interest will be paid respectively? (3) In Year 15, how much principal and interest will be paid respectively? (4) In Year 30, how much principal and interest will be paid respectively?
You plan to borrow $300,000 at a 4% annual interest rate for your mortgage. The terms require you to amortize the loan with 30 year equal end-of-month payments (i.e., totally 30*12=360 payments). (1) In Year 3 (i.e., payment #25 - Payment #36), how much principal and interest will be paid respectively? (2) In Year 8, how much principal and interest will be paid respectively? (3) In Year 15, how much principal and interest will be paid respectively? (4) In Year 30, how much principal and interest will be paid respectively?
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 plan to borrow $300,000 at a 4% annual interest rate for your mortgage. The terms require you to amortize the loan with 30 year equal end-of-month payments (i.e., totally 30*12=360 payments).
(1) In Year 3 (i.e., payment #25 - Payment #36), how much principal and interest will be paid respectively?
(2) In Year 8, how much principal and interest will be paid respectively?
(3) In Year 15, how much principal and interest will be paid respectively?
(4) In Year 30, how much principal and interest will be paid respectively?
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