Himchan begins to pay out the mortgage for his residential property of initial balance $500,000 at the end of each month. Note that the effective rate of interest is i(12) = 3.6% and he is making monthly mortgage payments for 20 years. If he made additional prepayment of $5,000 at the end of the 2nd and the 3rd years, respectively, how much would be the outstanding balance of the mortgage at the end of the 5th year?

Answer rating: 100% (QA)

To calculate the outstanding balance of the mortgage at the end of the 5th year after making additio... View the full answer