A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of $685.22. A) Find their unpaid balance after 1 year. (Round your answers to the nearest cent.) B) During that first year, how much do they pay towards the principle? (Round your answer to the nearest cent.) C) During that first year, what are their total payments? (Round your answer to the nearest cent.) D) During that first year, how much interest do they pay? (Round your answer to the nearest cent.)
A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of $685.22. A) Find their unpaid balance after 1 year. (Round your answers to the nearest cent.) B) During that first year, how much do they pay towards the principle? (Round your answer to the nearest cent.) C) During that first year, what are their total payments? (Round your answer to the nearest cent.) D) During that first year, how much interest do they pay? (Round your answer to the nearest cent.)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of $685.22.
A) Find their unpaid balance after 1 year. (Round your answers to the nearest cent.)
B) During that first year, how much do they pay towards the principle? (Round your answer to the nearest cent.)
C) During that first year, what are their total payments? (Round your answer to the nearest cent.)
D) During that first year, how much interest do they pay? (Round your answer to the nearest cent.)
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