Xin takes out a 20-year mortgage for $800,000 with a fixed rate. The stated annual interest rate
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Xin takes out a 20-year mortgage for $800,000 with a fixed rate. The stated annual interest rate of the mortgage is 12% and is compounded monthly. Xin will make 240 payments of $6,400 per month, starting in one month. Suppose Xin wins the lottery and makes an additional one-time payment 84 months after taking out the mortgage (84 months from today). How much will this payment be if Xin will continue to make all 240 payments and that the balance of the loan will be zero in 20 years? Your answer should be rounded to the nearest dollar.
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
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