Question: solve using math ( appropriate accumulation factors and conversions ) to get exactly $ 8 2 , 9 7 4 . 2 0 . The

solve using math (appropriate accumulation factors and conversions) to get exactly $82,974.20.The Steins buy a house and take out an $85000 mortgage. The mortgage is amortized over 25 years at j2=9%. After 3(1)/(2) years, the Steins sell their house and the buyer wants to set up a new mortgage better tailored to his needs. The Steins find out that in addition to repaying the principal balance on their mortgage, they must pay a penalty equal to three months' interest on the outstanding balance. What amount must they repay? Ans. $82974.20

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!