Question
A homeowner has $200,000 home with a 20-year mortgage, paid monthly at a quoted interest rate of 7.25% per year compounded semi-annually. After five years
A homeowner has $200,000 home with a 20-year mortgage, paid monthly at a quoted interest rate of 7.25% per year compounded semi-annually. After five years he receives $50,000 as an inheritance. If he pays this $50,000 toward his mortgage along with his regular payment, by approximately how many years will it reduce the amount of time it takes him to pay off his mortgage?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
0077664078, 978-0077664077, 78111048, 978-0078111044
