Suppose you decide to take out the $1 million 30-year fixed rate mortgage at 4%. a) How much money will you pay in interest in the first month (units: dollars)? b) How much principle will you still have left to pay off after making your first 15 years worth of payments (units: thousands of dollars)? c) How much money money will you pay in interest in the 181st payment (units: dollars)?
Suppose you decide to take out the $1 million 30-year fixed rate mortgage at 4%. a) How much money will you pay in interest in the first month (units: dollars)? b) How much principle will you still have left to pay off after making your first 15 years worth of payments (units: thousands of dollars)? c) How much money money will you pay in interest in the 181st payment (units: dollars)?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter7: Using Consumer Loans
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Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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Q) Suppose you decide to take out the $1 million 30-year fixed rate mortgage at 4%.
a) How much money will you pay in interest in the first month (units: dollars)?
b) How much principle will you still have left to pay off after making your first 15 years worth of payments (units: thousands of dollars)?
c) How much money money will you pay in interest in the 181st payment (units: dollars)?
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