Question
Juan is planning to solicit today a 25-year mortgage of 250.000. The interest rate is 9% annually, and the mortgage is repaid with fixed monthly
Juan is planning to solicit today a 25-year mortgage of 250.000. The interest rate is 9% annually, and the mortgage is repaid with fixed monthly payments. The first monthly payment will be in exactly one month. In exactly 8 years from now, Juan will receive an inheritance from his grandmother of 172.000, which he will use to repay the mortgage. How much will Juan still owe the bank at year 8, right after he has made the monthly payment and used his inheritance to reduce the loan?
a) Between 20000 and 30000 euros b) Between 42000 and 49000 euros c) Between 50000 and 55000 euros d) Between 15000 and 19000 euros
Please help me solve this, with proper explanation of why you selected one of the options
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