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Loan Amortization Assume that your aunt sold her house on December 3 1 , and to help close the sale she took a second mortgage
Loan Amortization
Assume that your aunt sold her house on December and to help close the sale she took a second mortgage in the amount of $ as part of the payment. The mortgage has a quoted or nominal interest rate of ; it calls for payments every months, beginning on June and is to be amortized over years. Now, year later, your aunt must inform the IRS and the person who bought the house about the interest that was included in the two payments made during the year. This interest will be income to your aunt and a deduction to the buyer of the house. To the closest cent, what is the total amount of interest that was paid during the first year? Do not round intermediate calculations. Round your answer to the nearest cent.
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