Question
You have just negotiated a home mortgage with a principal of $500,000. Thebank's quoted rate is 4.1%. You chose a 30-year amortization and you decide
You have just negotiated a home mortgage with a principal of $500,000. Thebank's quoted rate is 4.1%. You chose a 30-year amortization and you decide to make 24 payments per year. Each mortgage payment is $1,201.97. How much interest do you pay in the firstyear? Express the answer as a percentage of the total value of your mortgage payments in the first year.
What is the interest as a percentage of the total payments in year 1?
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
