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2,4% compounded yearly 2000 monthly payment 1 000 000 initial payment 40 years We are still thinking that the price of the apartment is very
2,4% compounded yearly
2000 monthly payment
1 000 000 initial payment
40 years
We are still thinking that the price of the apartment is very expensive, we believe we could convince the bank of making payments only once a year, at the end of the year. The interest rate would still be the same 2.4%, how much money have we saved with this action?
a) In the payments for each year?
b) in the total amount paid for the whole period?
c) what is the present value of the savings?
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