Question
A $53,000 interest-only mortgage loan is made for 30 years at a nominal interest rate of 9 percent. Interest is to be accrued daily, but
A $53,000 interest-only mortgage loan is made for 30 years at a nominal interest rate of 9 percent. Interest is to be accrued daily, but payments are to be made monthly. Assume 30 days each month.
Required:
a. What will the monthly payments be on such a loan?
b. What will the loan balance be at the end of 30 years?
c. What is the effective annual rate on this loan?
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Multinational Financial Management
Authors: Alan C. Shapiro
7th Edition
0471395307, 9780471395300
