Question: A borrower took out a 3 0 - year fixed - rate mortgage of $ 2 , 2 5 0 , 0 0 0 at

A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 7.2 percent annual rate. After five years, he wishes to pay off the remaining balance. Interest rates have fallen to 7 percent. How much must he pay to retire the mortgage (to the nearest dollar)? Hint: it may be easier to use the EXCEL function CUMPRINC to get how much principal has been paid in the five years. (You need to show the steps)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!