Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr Wickham borrowed money from the bank to buy a house. The interest rate was 6.1% p.a. compounded semi-annually and the mortgage contract specified that

Mr Wickham borrowed money from the bank to buy a house. The interest rate was 6.1% p.a. compounded semi-annually and the mortgage contract specified that the loan was to be paid back with equal monthly payments over 25 years with the first payment exactly one month after taking out the loan.

Mr Wickham has just made the 113th payment and when he determined the interest portion of the loan found that it was exactly $2,000.

  1. How much does Mr Wickham owe today?
  2. What was the amount of the original loan?
  3. What will be the principal portion of the 193rd payment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

3rd Edition

0073382426, 9780073382425

More Books

Students also viewed these Finance questions

Question

Use transformations to graph the equation y = cos(x - /2) - 1.

Answered: 1 week ago

Question

Explain the employee benefits that are required by law.

Answered: 1 week ago

Question

List the types of incentive plans.

Answered: 1 week ago