Question
Eric and Mary bought a house in Orillia 5 years ago. They took out a 30-year mortgage of $350,000 from Royal Bank at that time.
Eric and Mary bought a house in Orillia 5 years ago. They took out a 30-year mortgage of $350,000 from Royal Bank at that time. The stated interest rate is 6.8% (APR).
a) What is the monthly payment of the mortgage?
b) What is the outstanding balance of this mortgage as of today? (Assume they have just made their monthly payment and the next payment is due in a month.)
c) What is the interest portion of the 61th payment and what is the principal portion in that payment?
Step by Step Solution
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Step: 1
a Monthly payment To calculate the monthly payment of the mortgage we can use the following formula ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
