When paying off a home mortgage, extra principle payments can have a dramatic impact on the time

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When paying off a home mortgage, extra principle payments can have a dramatic impact on the time needed to pay off the mortgage.

(a) Create an amortization schedule for a $200,000, 3-year mortgage with a 6% APR.

(b) After the 5th year, add an extra $100 to each monthly payment. When is the loan payed off?

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Finance Applications and Theory

ISBN: 978-1259691416

4th edition

Authors: Marcia Cornett

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Question Posted: Apr 28, 2017 08:36 AM

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When paying off a home mortgage, extra principle payments can have a dramatic impact on the time

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a First use the annuity function to compute the payment for the loan 119910 T...View the full answer

Finance Applications and Theory

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