Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly). Answer the following question about this loan. After making 360 monthly payments, how much of what you paid the bank was interest? $ . Round to the nearest cent.
Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly). Answer the following question about this loan. After making 360 monthly payments, how much of what you paid the bank was interest? $ . Round to the nearest cent.
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 21E
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Amortization
Suppose you want to borrow $200,000 from the bank to buy a home and agree to repay the loan in 360 equal monthly payments, including all interest due. The bank charges 0.35% per month on the unpaid balance (4.2% per year compounded monthly).
Answer the following question about this loan.
After making 360 monthly payments, how much of what you paid the bank was interest?
$ . Round to the nearest cent.
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