Question
You are purchasing a house that costs $500,000. You plan on making a down paymentof$100,000(i.e.,yourequity)andborrowingthedifference(i.e.,yourdebt). Thetermsofyourmortgagewillbe$400,000inprincipal,a30-yearterm,andafixed APRof3.875%.Theloanpaymentsaremonthlyandinterestiscompoundedmonthly. As an amortizing loan, mortgage payments are comprised
You are purchasing a house that costs $500,000. You plan on making a down
paymentof$100,000(i.e.,yourequity)andborrowingthedifference(i.e.,yourdebt).
Thetermsofyourmortgagewillbe$400,000inprincipal,a30-yearterm,andafixed
APRof3.875%.Theloanpaymentsaremonthlyandinterestiscompoundedmonthly.
As an amortizing loan, mortgage payments are comprised of interest expense and principal repayment. Compute the interest component of the 61st payment.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
