Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was 2.50% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of the year 2? c. By how much will the amortization period shorten if Brian makes an extra payment of $30,000 at the end of year 2? ____ years ____ months
Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was 2.50% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of the year 2? c. By how much will the amortization period shorten if Brian makes an extra payment of $30,000 at the end of year 2? ____ years ____ months
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Brian received a 15 year loan of $285,000 to purchase a house. The interest rate on the loan was 2.50% compounded semi-annually.
a. What is the size of the monthly loan payment?
b. What is the balance of the loan at the end of the year 2?
c. By how much will the amortization period shorten if Brian makes an extra payment of $30,000 at the end of year 2? ____ years ____ months
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