AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month. How many more payments must be made? How much would this save over the life of the loan? How much is the total payment made over the entire period? How much interest is paid over the entire period?
AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month. How many more payments must be made? How much would this save over the life of the loan? How much is the total payment made over the entire period? How much interest is paid over the entire period?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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AtoHayle borrowed birr 200,000 at 6% compounded monthly for 30 years, and agree to repay the loan in 360 equal monthly installments including all interests due. Suppose that immediately after the 24th payment AtoHayle decides to increase the monthly payment by birr 600 per month. How many more payments must be made?
How much would this save over the life of the loan?
How much is the total payment made over the entire period?
How much interest is paid over the entire period?
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