Question
A fully amortizing mortgage loan is made for $120,000 at 6 percent interest for 30 years. Required: a. How much total interest would be paid
A fully amortizing mortgage loan is made for $120,000 at 6 percent interest for 30 years.
Required:
a. How much total interest would be paid over the entire 30-year life of the mortgage, if interest is paid: 1. Monthly. 2. Quarterly 3. Annually 4. Weekly (For all requirements, round your intermediate calculations and final answers to 2 decimal places.)
b. Which payment pattern would have the greatest total amount of interest over the 30-year term of the loan?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the total interest paid over the entire 30year life of the mortgage well need to use the amortization formula The formula is Interest Payment Loan Balance Interest Rate Principal Payment ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
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