You are now planning to finance a house that worth RM480,000 by mortgage. There are two options offered with different terms. The first option finances 90% of the house value, with 5% annually compounding interest rate over a 30-year repayment period. The second option finances only 80% of the house, with 4% semi-annually compounding interest rate over a 25-year repayment period. Calculate the payments per year under these two options.

You are now planning to finance a house that worth RM480,000 by mortgage. There are two options offered with different terms. The first option finances 90% of the house value, with 5% annually compounding interest rate over a 30-year repayment period. The second option finances only 80% of the house, with 4% semi-annually compounding interest rate over a 25-year repayment period. Calculate the payments per year under these two options.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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