On January 1, 2003 Mike took out a 30-year mortgage loàn in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by leve end-of-month payments with the first payment on January 31, 2003. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December the years 2003 through 2007. Determine the date on which Mike will make his last payment (which is a drop payment).
On January 1, 2003 Mike took out a 30-year mortgage loàn in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by leve end-of-month payments with the first payment on January 31, 2003. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December the years 2003 through 2007. Determine the date on which Mike will make his last payment (which is a drop payment).
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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Transcribed Image Text:On January 1, 2003 Mike took out a 30-year mortgage loan in the amount of 200,000 at an
annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by level
end-of-month payments with the first payment on January 31, 2003.
Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in
years 2003 through 2007.
the
Determine the date on which Mike will make his last payment (which is a drop payment).
(A)
July 31, 2013
(B)
November 30, 2020
(C)
December 31, 2020
(D)
December 31, 2021
(E)
January 31, 2022
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