Humphrey purchases a 100,000 home. Mortgage payments are to be made monthly for 30 years, with the first payment to be made one month from now. The annual effective rate of interest is 4%. After 10 years, the amount of each monthly payment is increased by 319.74 in order to repay the mortgage more quickly. Calculate the amount of interest paid over the duration of the loan. Select one: A. 52,000 B. 52,100 C. 52,200 D. 52,300 E. 52,400
Humphrey purchases a 100,000 home. Mortgage payments are to be made monthly for 30 years, with the first payment to be made one month from now. The annual effective rate of interest is 4%. After 10 years, the amount of each monthly payment is increased by 319.74 in order to repay the mortgage more quickly. Calculate the amount of interest paid over the duration of the loan. Select one: A. 52,000 B. 52,100 C. 52,200 D. 52,300 E. 52,400
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 24PROB
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