Question
suppose you borrow buy a 200000 house and put $50,000 down toward the purchase price . you borrow the rest from a bank at 6%
suppose you borrow buy a 200000 house and put $50,000 down toward the purchase price . you borrow the rest from a bank at 6% annual interest compounded monthly, on 1.1.16, for a 30-year period. the plan on the last day of each month. (i)On what date do you anticipate making your first payment? Your final payment? (ii) How much money did you borrow from the bank? (iii) what is the future value of this money? (iv) Find the monthly payment the bank will require of you. (v) Suppose that at the end of each month for the first six months after taking out the loan, you pay the require amount. Find the future value of these six payments. (And suppose immediately after making the sixth payment, you win a huge amount of money by betting against Mark. If you now can repay the bank in full, how much more must you pay, so that the bank gets its full future value?
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