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You borrow one million dollars to purchase a house. The loan is amortized over a 25- year period. You contract on a rate of 10%
You borrow one million dollars to purchase a house. The loan is amortized over a 25- year period. You contract on a rate of 10% compounded semi-annually with bi- weekly (every two weeks) payments for a fixed rate 5-year term. You make an additional $50,000 payment at the end of the fourth year. What do you owe at the end of the 5-year term (within 2000)? 876k 880K 884k 888 None of the above
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