Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Solve by using the sinking fund or amortization formula.
Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest.
(a)
What amount (in $) did Betty finance?
$
(b)
What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.)
$
(c)
What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.)
$
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