Question
Armed with a down payment, take out a loan for 30 year fixed at 8% with a monthly payment of $4,000 a month. a. How
Armed with a down payment, take out a loan for 30 year fixed at 8% with a monthly payment of $4,000 a month.
a. How much would they receive as a loan:
b. Amortize the first three payments on the 6-year loan.
Provide:
• Interest expense for the first three months of the loan
• $$ flows for the first three months of the loan
• Loan Balance at end of the first three months of the loan.
Step by Step Solution
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Step: 1
SOLUTION IN DETAILS To calculate the loan amount we need to use the monthly payment and the interest rate for a 30year fixed loan at 8 a Loan Amount To determine the loan amount we can use the formula ...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
