Question
Brian arranges a mortgage for $170 000.00. He plans to repay the mortgage in equal monthly payments over 16 years at 3.2% per year
Brian arranges a mortgage for $170 000.00. He plans to repay the mortgage in equal monthly payments over 16 years at 3.2% per year compounded semi-annually. a) Determine Brian's monthly payment. b) How much interest will Brian pay over the life of the mortgage? c) After one payment half-way through the amortization period, the outstanding balance is $95 736.23. What percent of the mortgage will have been paid? d) In the same payment, Brian expects to pay $874.81 of the principal. How much of this payment pays the interest?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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