Question
John (25) and Marry (27) is a newly married couple. They live in Lithuania. Marry works as a chemists assisstant at one private laboratory. Her
John (25) and Marry (27) is a newly married couple. They live in Lithuania. Marry works as a chemists assisstant at one private laboratory. Her neto monthly salary is 900 EUR. Her husband John was recently hired by FESTO as an engineer. His monthly neto income 1 800 EUR. Marry and John attended personal finance course recently and decided to create their emergency finance fund (rainy day fund). Up to now they have already saved 2000 EUR and just today deposited these money into a two-year terminated savings account with 6% interest rate compounded monthly. They will use these money for their emergency fund which they plan to create during two years time. Marry and John are also planning to buy a cottage. They saved for some time and accumulated 20 000 EUR which they plan to spend on cottage this year. This amount of money is not sufficient therefore they also plan to take a mortgage. The price of their dream house is 120 000 eur.
If John and Marry took a mortgage (loan for a house) for 20 years with 6% interest rate. How big would their third monthly payment be using the linear method for loan repayment?
a.
1095
b.
912,50
c.
416,6667
d.
500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started