Question
Kimiko signed a mortgage requiring payments of $407.95 at the end of every month for 4 years at 6.2 % compounded monthly. (a) How much
Kimiko signed a mortgage requiring payments of $407.95 at the end of every month for 4 years at 6.2 % compounded monthly.
(a) How much was the original mortgage balance?
(b) If Kimiko missed the first 8 payments, how much would she have to pay after 9 months to bring the mortgage payments up to date?
(c) How much would Kimiko have to pay after 9 months to pay off the mortgage (assuming she missed all the payments)?
(d) If the mortgage were paid off after 9 months, what would the total interest cost be?
(e) How much of the total interest cost is additional interest because of the missed payments?
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