You have borrowed $130,000 to buy a new condo. Your loan is tobe repaid over 15 years at 6% compounded monthly. Using thetable below, calculate the principal paid to the bank in the secondmonth.Month PMT12$449.25$453.98$443.66$459.35Interest Principal End Bal$130,000.00||1

Time, the value of money refers to the concept used for determining the future value of an asset…

You have borrowed $130,000 to buy a new c be repaid over 15 years at 6% compounded m table below, calculate the principal paid to the month. Month PMT 1 2 $449.25 $453.98 $443.66 $459.35 Interest Principal 1

You have borrowed $130,000 to buy a new c be repaid over 15 years at 6% compounded m table below, calculate the principal paid to the month. Month PMT 1 2 $449.25 $453.98 $443.66 $459.35 Interest Principal 1

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

You have borrowed $130,000 to buy a new condo. Your loan is to
be repaid over 15 years at 6% compounded monthly. Using the
table below, calculate the principal paid to the bank in the second
month.
Month PMT
1
2
$449.25
$453.98
$443.66
$459.35
Interest Principal End Bal
$130,000.00
||
1

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