Question
Your sisters Rebecca and Debra each just bought a house. Each sister paid $750,000 for the house. Each sister had a down payment of $200,000.
Your sisters Rebecca and Debra each just bought a house. Each sister paid $750,000 for the house. Each sister had a down payment of $200,000. Each sister got a mortgage with a 5 year term and a 25 amortization period. The rate on each mortgage was 2.2% compounded semi-annually. Payments will be made monthly.
- What is the amount of the monthly payment?
- How much will each sister pay during the 1st months of the mortgage?
- Debra has decided to increase her monthly payments by $500 per month. How long will it take Debra to pay off her mortgage? How much will Debra pay in interest over the life of the mortgage?
- How much will Rebecca pay in interest over the life of the mortgage?
Step by Step Solution
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Step: 1
To calculate the monthly payment we can use the formula for the monthly payment on a mortgage Monthly Payment P r 1 1 rn Where P Principal amount loan ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
