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- You plan to take a 30-year mortgage in the amount of $700,000 to buy a home. The bank charges 5.5% annual interest compounded monthly.
- You plan to take a 30-year mortgage in the amount of $700,000 to buy a home. The bank charges 5.5% annual interest compounded monthly. You are going to pay off this loan by fixed installments (fixed total payment) to be made at the end of each month for 30 years. Find the principal repayment and interest payment for month 1.
Month BEG bal Total PMT Principal Interest
1 700,000.00 3,974.52 ? ?
A-$1313.76; $2250.00
B-$766.19; $3208.33
C-$766.19; $2250.00
D-$1313.76; $3208.33
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