Question
1. You just bought a house for $300,000. You put $100,000 as a down payment and borrow the remaining $200,000 from a bank. You take
1. You just bought a house for $300,000. You put $100,000 as a down payment and borrow the remaining $200,000 from a bank. You take out a 30-year mortgage that charges you 6 percent APR but with monthly compounding.
a. How much is your monthly mortgage payment? Show your work.
b. How much of your second mortgage payment goes towards interest? Show your work.
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
