Question: Please provide step by step guide without using excel and use financial calculator Problems 7 - 1 0 are based on the following information:You ve

Please provide step by step guide without using excel and use financial calculator
Problems 7-10 are based on the following information:Youve just bought a house and took a $300,000 mortgage that you plan to repay in equal monthly payment of $3,159.67 during the next 25 years starting next month (i.e., you will make a total of 300 monthly payments). The monthly interest rate is 1%
Problem 7:How much of your SECOND payment will be interest?
Problem 8:What will be your balance 5 years from now (right after your 60th payment)?
Problem 9:If 10 years from now you will make a pre-payment (an extra payment in addition to your regular 120th payment) of $20,000 by how many months (rounded to the closest integer) will it decrease the length of your mortgage?
Problem 10:If 10 years from now you will make a pre-payment (an extra payment in addition to your regular 120th payment) of $20,000 by how much such prepayment will decrease your outstanding balance 17 years from now (at the time of your 204th payment)?

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!