You will be paying off a mortgage of $250,000 over the next 25 years. You have signed a loan agreement with Me-Bank to secure a fixed rate of 5.00%. The mortgage loan is compounded semi-annually. a) What are the monthly payments? b) How much will your payments be over the first five years? c) What is the amount of principal that you pay off with the first payment? d) How much principal remains to be paid after the first five years? e) How much will remain to be paid off after you have made your payment at the end of the 15th year?
You will be paying off a mortgage of $250,000 over the next 25 years. You have signed a loan agreement with Me-Bank to secure a fixed rate of 5.00%. The mortgage loan is compounded semi-annually. a) What are the monthly payments? b) How much will your payments be over the first five years? c) What is the amount of principal that you pay off with the first payment? d) How much principal remains to be paid after the first five years? e) How much will remain to be paid off after you have made your payment at the end of the 15th year?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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You will be paying off a mortgage of $250,000 over the next 25 years. You have signed a loan agreement with Me-Bank to secure a fixed rate of 5.00%. The mortgage loan is compounded semi-annually.
a) What are the monthly payments?
b) How much will your payments be over the first five years?
c) What is the amount of principal that you pay off with the first payment?
d) How much principal remains to be paid after the first five years?
e) How much will remain to be paid off after you have made your payment at the end of the 15th year?
Redo a) to e) if the mortgage loan is compounded annually
Please answer all the subparts a,b,c,d,e.if answered within 45mins,it would be appreciable.i will surely upvote
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