Question
You entered into a mortgage agreement to borrow $100,000 at an interest rate of 4% and to be returned in 30 years. You pay a
You entered into a mortgage agreement to borrow $100,000 at an interest rate of 4% and to be returned in 30 years. You pay a constant amount at the end of each year, partly to cover the interest and the rest to pay back the principal.
a) How much are you paying to the bank each year?
b) At the end of 25 years, how much principal do you still owe the bank?
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Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
