Question
Determine the annual repayment schedule for the first two years (i.e., interest, principal repayment, and balance owed) for each of the following. (Assume that only
Determine the annual repayment schedule for the first two years (i.e., interest, principal repayment, and balance owed) for each of the following. (Assume that only one payment is made annually.)
a. $100,000 conventional mortgage for 25 years at 5 percent
Annual Payment = PMT (x) =
| Year | Interest Payment | Principal Repayment | Loan Balance |
| 1 |
|
|
|
| 2 |
|
|
|
b. $100,000 conventional mortgage for 20 years at 5 percent
Annual Payment = PMT (x) =
| Year | Interest Payment | Principal Repayment | Loan Balance |
| 1 |
|
|
|
| 2 |
|
|
|
c. $100,000 conventional mortgage for 25 years at 6 percent
Annual Payment = PMT (x) =
| Year | Interest Payment | Principal Repayment | Loan Balance |
| 1 |
|
|
|
| 2 |
|
|
|
d. Compare the payments required by each mortgage.
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
4th Edition
0130176028, 9780130176028
