Question
I HAVE THE ANSWERS BUT I NEED THE WORK TO GET TO THE ANSWER. please use Time Value of Money on a financial calulator Suppose
I HAVE THE ANSWERS BUT I NEED THE WORK TO GET TO THE ANSWER. please use Time Value of Money on a financial calulator
Suppose you take a $145,000 thirty-year fixed-rate mortgage at 6.50%, two discount points, monthly payments. At the end of the first year you inherit $12,000 from your now-favorite uncle. You decide to apply this $12,000 to the principal balance of your loan.
A. How many monthly payments are remaining after the extra lump sum payment is made? ANSWER IS: 277.34
B. What is your net interest savings over the life of the loan by doing this, assuming the loan is held for its full term? ANSWER IS: 52,758
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