Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the interest rate was 8% p.a. compounded monthly. To fully repay the loan in 30 years, Leo will make equ monthly repayments including the principal and the interest starting one month after the borrowing date. The bank increased the interest rate to 11% p.a. compounded monthly today. Calculate the amount in maximum Leo can borrow now. Assume there is no change in the monthly repayments and the loan term. ( answer in excel )
Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the interest rate was 8% p.a. compounded monthly. To fully repay the loan in 30 years, Leo will make equ monthly repayments including the principal and the interest starting one month after the borrowing date. The bank increased the interest rate to 11% p.a. compounded monthly today. Calculate the amount in maximum Leo can borrow now. Assume there is no change in the monthly repayments and the loan term. ( answer in excel )
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Leo needs a home loan. According to his income, he could borrow $1405956 in maximum when the interest rate was 8% p.a. compounded monthly. To fully repay the loan in 30 years, Leo will make equ monthly repayments including the principal and the interest starting one month after the borrowing date. The bank increased the interest rate to 11% p.a. compounded monthly today. Calculate the amount in maximum Leo can borrow now. Assume there is no change in the monthly repayments and the loan term. ( answer in excel )
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