Question
Wanda takes out a 33-year mortgage for $186000 at an interest rate of j1 = 7.8%. After the 10th monthly mortgage payment, she decides to
Wanda takes out a 33-year mortgage for $186000 at an interest rate of j1 = 7.8%. After the 10th monthly mortgage payment, she decides to make some changes. To repay the loan, she will make 99 more mortgage payments (additional to the 10 she has already made). At the same time as the 11th payment that is, one month from the 10th payment), she plans to set up a sinking-fund that will pay off the remainder of the mortgage on the same day as she makes the last mortgage payment. If the sinking-fund earns interest at 112 = 5.7%. What will be the amount of each monthly sinking-fund deposit?
Step by Step Solution
3.47 Rating (160 Votes )
There are 3 Steps involved in it
Step: 1
Mortgage amount is 186000 Term is 33 years or 396 m...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Fundamentals of Engineering Economics
Authors: Chan S. Park
3rd edition
132775425, 132775427, 978-0132775427
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App