Question
A couple has decided to purchase a $240000 house using a down payment of $20000. They can amortize the balance at 12% over 25 years.
A couple has decided to purchase a $240000 house using a down payment of $20000. They can amortize the balance at 12% over 25 years.
a) What is their monthly payment?
Answer = $__________
b) What is the total interest paid?
Answer = $____________
c) How much of their first payment went toward paying interest?
Answer = $___________
d) How much of their first payment went toward paying the balance of the loan.
Answer = $___________
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Derivatives Markets
Authors: Robert L. McDonald
2nd Edition
032128030X, 978-0321280305
