You borrowed $467,000 to buy a home on a 30-year mortgage with interest rate of 7.2 percent. You will make monthly payments. If you make your payments regularly, what percentage of the first five years' payments will go toward interest? O 75 percent O 90 percent O 85 percent O 80 percent

You borrowed $467,000 to buy a home on a 30-year mortgage with interest rate of 7.2 percent. You will make monthly payments. If you make your payments regularly, what percentage of the first five years' payments will go toward interest? O 75 percent O 90 percent O 85 percent O 80 percent

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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Question

You borrowed $467,000 to buy a home on a 30-year mortgage with
interest rate of 7.2 percent. You will make monthly payments. If you make
your payments regularly, what percentage of the first five years' payments
will go toward interest?
O 75 percent
O 90 percent
O 85 percent
O 80 percent

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