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Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) (

Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) (

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 7EB: McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they...
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c) Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 il. Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: i. Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) ( Calculate the total interest paid in year 11. (Round your answer to the nearest cent.) (
Transcribed Image Text:c) Oliver takes out a home loan of $960,000. For the first 10 years, he only repays the interest amount at the end of each month. After the interest-only period expires, Oliver needs to repay both the principal and the interest amount every month end. Below is the loan repayment schedule for month 132. Month 132 Opening balance of the loan 914,997.77 il. Interest Paid 2,744.99 Principal Paid 4,165.12 Ending balance of the loan 910,832.65 Using this information answer parts i) and ii) below: i. Calculate the total interest paid in year 10. (Round your answer to the nearest cent.) ( Calculate the total interest paid in year 11. (Round your answer to the nearest cent.) (
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