1.You want to buy a home in five years and you v.rill need a downpayment of $20,000.Ifyou make monthly payments in an account that is expected to earn 12% annual interest compounded monthly, how much total interest is earned over the 5years?

 

 2 A fully amortizing mortgage loan is made for $1,000,000 at 8% interest for 30 years, payments are to be made monthly. Calculate the outstanding loan balance if the loan is repaid in year 10. 

 

3 A fully amortizing mortgage loan is made for $1,100,000 at 7% interest for 30 years, payments are to be made monthly. Calculate the principal payment in the firs month.

Answer rating: 100% (QA)

1 To calculate the total interest earned over 5 years we can use the formula for compound interest A P1 rnnt Where A Final amount including interest P ... View the full answer