Suppose you are buying your first house for $400,000 with 20% down payment. You have arranged to finance the remaining amount with a 30-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%.

A) What is the monthly mortgage payment?

B) For the 120th payment, what is the break down between interest payment vs. principal payment?

C) What is the remaining balance after 25 years with 300 monthly payments?

Question

Suppose you are buying your first house for $400,000 with 20% down payment. You have arranged to finance the remaining amount with a 30-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%.

A) What is the monthly mortgage payment?

B) For the 120th payment, what is the break down between interest payment vs. principal payment?

C) What is the remaining balance after 25 years with 300 monthly payments?

Accepted Answer

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Question

Suppose you are buying your first house for $400,000 with 20% down payment. You have arranged to finance the remaining amount with a 30-year, monthly

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