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Mortgage Payoff: You take out a 30-year fixed rate mortgage for a house. The amount borrowed is $300,000. The interest rate is 4% per year
- Mortgage Payoff: You take out a 30-year fixed rate mortgage for a house. The amount borrowed is $300,000. The interest rate is 4% per year compounded monthly. You decide to sell the house immediately after the 60thpayment (five years). How much do you still owe on the loan?
- What is the total amount you have paid the lender by the time you sell the house?
- How much principal have you paid the lender by the time you sell the house?
- How much interest have you paid the lender by the time you sell the house?
- What fraction of your payments went to reducing the principal?
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Lets go through the problem step by step to calculate the various amounts related to the mortgage Step 1 Calculate the Monthly Payment The monthly mortgage payment for a fixedrate mortgage can be calc...
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Modern Advanced Accounting in Canada
Authors: Hilton Murray, Herauf Darrell
8th edition
1259087557, 1057317623, 978-1259087554
