Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Problem 7-3 (LG 7-4)
You plan to purchase an $140,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is
4 percent. You will make a down payment of 10 percent of the purchase price.
a. Calculate your monthly payments on this mortgage.
b. Calculate the amount of interest and, separately, principal paid in the 230th payment.
c. Calculate the amount of interest and, separately, principal paid in the 260th payment.
d. Calculate the amount of interest paid over the life of this mortgage.
(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.. 32.16))
a,
b.
Answer is complete but not entirely correct.
Amount
Monthly payment
Amount of interest
Amount of principal
$
$
$
601.54
388.99
212.55
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Transcribed Image Text:Problem 7-3 (LG 7-4) You plan to purchase an $140,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 4 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 230th payment. c. Calculate the amount of interest and, separately, principal paid in the 260th payment. d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g.. 32.16)) a, b. Answer is complete but not entirely correct. Amount Monthly payment Amount of interest Amount of principal $ $ $ 601.54 388.99 212.55
d. Calculate the amount of interest paid over the life of this mortgage.
(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
a.
b.
C.
d.
Answer is complete but not entirely correct.
Amount
Monthly payment
Amount of interest
Amount of principal
Amount of interest
Amount of principal
Amount of interest paid
$
$
601.54
388.99 X
212.55
$ 429.83
$
171.71
$ 76,555.58
$
2
expand button
Transcribed Image Text:d. Calculate the amount of interest paid over the life of this mortgage. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. b. C. d. Answer is complete but not entirely correct. Amount Monthly payment Amount of interest Amount of principal Amount of interest Amount of principal Amount of interest paid $ $ 601.54 388.99 X 212.55 $ 429.83 $ 171.71 $ 76,555.58 $ 2
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