You have just negotiated a home mortgage with a principal of $450,000. The bank's quoted rate is
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You have just negotiated a home mortgage with a principal of $450,000. The bank's quoted rate is 4.6%. You chose a 25-year amortization and you decide to make 26 payments per year. Each mortgage payment is $1,159.91. How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year.
The interest as a percentage of the total payments in year 1 is...…?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
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