Sergio purchased a house for $440,000; he paid $44000 as a down payment and financed the balance amount at 4.9% compounded monthly for 20 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Sergio pays an additional $350 per month, how many periods will it take to payoff the load?
Sergio purchased a house for $440,000; he paid $44000 as a down payment and financed the balance amount at 4.9% compounded monthly for 20 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Sergio pays an additional $350 per month, how many periods will it take to payoff the load?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Sergio purchased a house for $440,000; he paid $44000 as a down payment and financed the balance amount at 4.9% compounded monthly for 20 years.
a) What is the size of payment made at the end of every month to settle the loan?
b) What was the amount of interest charged for the entire loan?
c) If Sergio pays an additional $350 per month, how many periods will it take to payoff the load?
$d) If Sergio pays an additional $350 per month, how much interest will be saved?
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