Question
Assumed that a fund can pay dividend steadily for the coming 10 years, which will generate an equivalent return of 5% annually, and the bank
Assumed that a fund can pay dividend steadily for the coming 10 years, which will generate an equivalent return of 5% annually, and the bank charge is negligible.
Peter is thinking of investing $10,000 at the end of each month in this fund for the purpose of using it for the down payment of purchasing a real property in the future.
Ten years later, Peter gets married. Although the fund value has increased a lot and became sufficient for him to pay for the down payment of purchasing a residential property, they still have to borrow $5,000,000 from a bank. They select a 20 years mortgage plan at 3% annual interest rate.
What is the amount of their monthly instalment? (Use 4 decimal places of the interest rate factor to do the calculation.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started