You made your purchase and now decided with your lovely partner to call your local contractor and get a quotation to construct a house you designed yourself. He gives you a price of 3.5M to complete you dream two storey, 3BR home. You ask if he offers an installment payment term and he offers you a 5 years to pay with 50% down payment compounded ANNUALLY at 8%. How much will be your MONTHLY amortization for this contract? If you partner tells you that your design is horrible and decides to hire an architect the quotation price for all the services goes up to 4M , how much will the new MONTHLY be? Show the amortization schedule

You made your purchase and now decided with your lovely partner to call your local contractor and get a quotation to construct a house you designed yourself. He gives you a price of 3.5M to complete you dream two storey, 3BR home. You ask if he offers an installment payment term and he offers you a 5 years to pay with 50% down payment compounded ANNUALLY at 8%. How much will be your MONTHLY amortization for this contract? If you partner tells you that your design is horrible and decides to hire an architect the quotation price for all the services goes up to 4M , how much will the new MONTHLY be? Show the amortization schedule

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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