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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