Task 2 You decide to take out a mortgage of NOK 2,500,000. The maturity is set...

 

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Task 2 You decide to take out a mortgage of NOK 2,500,000. The maturity is set at 30 years and the interest rate is 1.98% per annum. The installment is to be paid monthly according to the annuity principle, and the first payment is in one month. a) What will be the forward amount? b) What is the residual loan right after payment number 60? You have also decided to start with individual retirement savings, and will save a fixed amount annually, for 20 years, in a high-interest account that guarantees 3% return per year. c) How much do you have to have in your account to be able to withdraw $ 50,000 every year for 10 years? The first withdrawal is one year after the last payment. d) How much do you need to save per year for the 20 years? Task 2 You decide to take out a mortgage of NOK 2,500,000. The maturity is set at 30 years and the interest rate is 1.98% per annum. The installment is to be paid monthly according to the annuity principle, and the first payment is in one month. a) What will be the forward amount? b) What is the residual loan right after payment number 60? You have also decided to start with individual retirement savings, and will save a fixed amount annually, for 20 years, in a high-interest account that guarantees 3% return per year. c) How much do you have to have in your account to be able to withdraw $ 50,000 every year for 10 years? The first withdrawal is one year after the last payment. d) How much do you need to save per year for the 20 years? Task 2 You decide to take out a mortgage of NOK 2,500,000. The maturity is set at 30 years and the interest rate is 1.98% per annum. The installment is to be paid monthly according to the annuity principle, and the first payment is in one month. a) What will be the forward amount? b) What is the residual loan right after payment number 60? You have also decided to start with individual retirement savings, and will save a fixed amount annually, for 20 years, in a high-interest account that guarantees 3% return per year. c) How much do you have to have in your account to be able to withdraw $ 50,000 every year for 10 years? The first withdrawal is one year after the last payment. d) How much do you need to save per year for the 20 years?

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Mortgage Calculations a Forward Amount To calculate the forward amount present value of remaining payments after a certain number of payments we can u... View the full answer