Question
Say you bought a house for $325,000 with 20% down, and financed it from a bank for a 15-year term at 3.25% interest per year
Say you bought a house for $325,000 with 20% down, and financed it from a bank for a 15-year term at 3.25% interest per year compounded monthly. If you paid an extra $900 every year (end of 12th month) along with the regular month-end payments, which will be true from the following?
A- You will be able to cut off 72 payments from the loan. | ||
B- You will have to make 170 payments of $1,826.94 | ||
C- You will have to make 171 monthly payments of $1,826.94, $900 yearly payments for 14 years, and make a 172nd payment at the end of the 172nd month of $402.37. | ||
D- None of the above are true. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started