Chapter 6 Discussion Q2 What is the effective cost of the following combined loan? Loan amount Term 180,000 20 years 40,000 10 years 220,000 Monthly Payment (Year 1-10) -1,619.51 -597.24 -2,216.75 Monthly Payment (Year 11-20) -1,619.51 0 -1,619.51 Chapter 6 Discussion Q2 What is the effective cost of the following combined loan? Loan amount Term 180,000 20 years 40,000 10 years 220,000 Monthly Payment (Year 1-10) -1,619.51 -597.24 -2,216.75 Monthly Payment (Year 11-20) -1,619.51 0 -1,619.51 Chapter 6 Discussion Q2 What is the effective cost of the following combined loan? Loan amount Term 180,000 20 years 40,000 10 years 220,000 Monthly Payment (Year 1-10) -1,619.51 -597.24 -2,216.75 Monthly Payment (Year 11-20) -1,619.51 0 -1,619.51 Chapter 6 Discussion Q2 What is the effective cost of the following combined loan? Loan amount Term 180,000 20 years 40,000 10 years 220,000 Monthly Payment (Year 1-10) -1,619.51 -597.24 -2,216.75 Monthly Payment (Year 11-20) -1,619.51 0 -1,619.51