A 30-year fully amortizing mortgage loan was made 10 years ago for $79,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $10,800. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity? Complete this question by entering your answers in the tabs below. Required A Required B Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity? (Round your intermediate calculations to 2 decimal places and round the final answers to the nearest whole number.) New loan maturity months < Required A Required B>
A 30-year fully amortizing mortgage loan was made 10 years ago for $79,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $10,800. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity? Complete this question by entering your answers in the tabs below. Required A Required B Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity? (Round your intermediate calculations to 2 decimal places and round the final answers to the nearest whole number.) New loan maturity months < Required A Required B>
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter5: Making Automobile And Housing Decisions
Section: Chapter Questions
Problem 7FPE
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Subject :- Accounting
Transcribed Image Text:A 30-year fully amortizing mortgage loan was made 10 years ago for $79,000 at 6 percent interest. The borrower would like to prepay
the mortgage balance by $10,800.
Required:
a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment?
b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?
Complete this question by entering your answers in the tabs below.
Required A Required B
Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity? (Round
your intermediate calculations to 2 decimal places and round the final answers to the nearest whole number.)
New loan maturity
months
< Required A
Required B
Transcribed Image Text:57
A 30-year fully amortizing mortgage loan was made 10 years ago for $79,000 at 6 percent interest. The borrower would like to prep
the mortgage balance by $10,800.
Required:
a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment?
b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?
Complete this question by entering your answers in the tabs below.
Required A Required B
Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? (Do not round intermediate
calculations. Round your final answers to 2 decimal places.)
New mortgage payment
Required A
Required B >
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