Rebecca just bought a house. Rebecca paid $1,000,000 for the house. Rebecca had a down payment of $200,000. Rebecca got a mortgage with a 2-year
Rebecca just bought a house. Rebecca paid $1,000,000 for the house. Rebecca had a down payment of $200,000. Rebecca got a mortgage with a 2-year term and a 25-year amortization period. Rebecca's mortgage rate was 7.2% compounded semi-annually. Rebecca will make monthly mortgage payments.
Requirement
1) What is the amount of the Rebecca's monthly payment?
2) How much will Rebecca pay in interest during the 1st month of the mortgage?
3) Rebecca plans on making her required monthly payment during the life of the mortgage. How much will she owe on the mortgage at the end of the term?
4) How much will Rebecca pay in interest over the life of the mortgage?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Rebeccas Mortgage Calculations 1 Monthly Payment Lets first calculate the loan amount Loan amount Ho...
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Step: 2
Step: 3
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Authors: Leland Blank, Anthony Tarquin
7th Edition
9781259027406, 0073376302, 1259027406, 978-0073376301
