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