A house cost $300,000. The buyer pays $150,000 cash and agrees to discharge the balance by...

 

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A house cost $300,000. The buyer pays $150,000 cash and agrees to discharge the balance by payments of $3,500 at the end of each month. If money is worth 7% compounded monthly, find: a) number of-regular payments; b) date when the fund, first exceed $300,000; c) final payment on the day of the last regular payment; d) final payment one period after the last regular payment; e) the outstanding principal after the 10th period. A debt of $250,000 is to be repaid after 5 years. If the interest is charged at 5% compounded semi-annually, a sinking fund is created at a rate of 6% compounded semi-annually. Find: a) the semi-annual cost by the sinking fund method; b) the semi-annual cost by amortization; c) Did the borrower made the right decision in setting up a sinking fund? Justify your answer. A house cost $300,000. The buyer pays $150,000 cash and agrees to discharge the balance by payments of $3,500 at the end of each month. If money is worth 7% compounded monthly, find: a) number of-regular payments; b) date when the fund, first exceed $300,000; c) final payment on the day of the last regular payment; d) final payment one period after the last regular payment; e) the outstanding principal after the 10th period. A debt of $250,000 is to be repaid after 5 years. If the interest is charged at 5% compounded semi-annually, a sinking fund is created at a rate of 6% compounded semi-annually. Find: a) the semi-annual cost by the sinking fund method; b) the semi-annual cost by amortization; c) Did the borrower made the right decision in setting up a sinking fund? Justify your answer.

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Answer Griven amount of loan cost of the house P 300... View the full answer