You take out a 28-year mortgage loan for $757000. The annual interest rate of the loan that you pay is 3%, and you make monthly payments. In addition to the required monthly payment, you decide to add an extra $410 to your payment to pay the loan off early. After how many payments will the loan be paid off completely? (Note: the last payment you make may not be for the normal amount you would pay, but it still counts as a payment.) Answer = The loan will be paid after months (Think about what the appropriate rounding would be here.)
You take out a 28-year mortgage loan for $757000. The annual interest rate of the loan that you pay is 3%, and you make monthly payments. In addition to the required monthly payment, you decide to add an extra $410 to your payment to pay the loan off early. After how many payments will the loan be paid off completely? (Note: the last payment you make may not be for the normal amount you would pay, but it still counts as a payment.) Answer = The loan will be paid after months (Think about what the appropriate rounding would be here.)
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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Transcribed Image Text:You take out a 28-year mortgage loan for $757000. The annual interest rate of the loan that you pay is 3%,
and you make monthly payments. In addition to the required monthly payment, you decide to add an extra
$410 to your payment to pay the loan off early. After how many payments will the loan be paid off
completely? (Note: the last payment you make may not be for the normal amount you would pay, but it
still counts as a payment.)
Answer = The loan will be paid after
months (Think about what the
appropriate rounding would be here.)
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