Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kimiko signed a mortgage requiring payments of $389.94 at the end of every month for 4 years at 6.3% compounded monthly. (a) How much was

image text in transcribed
Kimiko signed a mortgage requiring payments of $389.94 at the end of every month for 4 years at 6.3% compounded monthly. (a) How much was the original mortgage balance? (6) If Kimiko missed the first 10 payments, how much would she have to pay after 11 months to bring the mortgage payments up to date? C) How much would Kimiko have to pay after 11 months to pay off the mortgage (assuming she missed all the payments)? (d) If the mortgage were paid off after 11 months, what would the total interest cost be? (e) How much of the total interest cost is additional interest because of the missed payments? (a) The original mortgage balance was $ 16,506.92 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) (b) Kimiko would have to pay $4,403,73 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) Kimiko would need $ 17,485.62 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (d) The total interest cost would be $ 978.70 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) (e) The interest resulting from the deferral is $0 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as nooded.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions