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Problem 4 Today is July 1, 2000. Youve just borrowed $100,000 to purchase a house. The terms of the loan are 6% APR with monthly compounding. Its a standard 30 year loan, with 360 payments, which occur at the end of each month. Part (A) owe? Immediately after you make your 57th payment, how much money do you still Part (B) Immediately after you make your 359th payment, how much do you stll owe? Part (C) What proportion of the first payment went to paying down interest? (answer as a decimal) Part (D) What proportion of the last payment went to paying interest?

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File Home nert Page Layout Formulas Data Review View dd-Ins as Cut aCopy Σ AutoSum Calibri ー E ゴWrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting DK214 DE DF DG DH DI DJ DK DL 204 205 206 207 208 209 210 A 211 212 213 214 B 215 216 217 218 C 219 220 221D LOAN RATE YEARS PERIODS IN A YEAR PMT 100000 6% 30 12 599.55 EXCEL PMT(DG205/DG207,DG206 DG207,-DG204) AFTER 57TH PAYMENT OUTSTANDING INSTALMENTS LOAN BALANCE 303 (360-57) $93,453.20 EXCEL PV(DG205/DG207,DG211,-DG208) AFTER 359TH PAYMENT = OUTSTANDING INSTALMENTS LOAN BALANCE- 1 (360-359) $ 596.57 PV(DG205/12,DG215,-DG208) LOAN BALANCE AT THE TIME OF IST INSTALMENT 100000 INTEREST-100000 X 6% X (1/12)- 500 $ 596.57 2.98 BOX LOAN BALANCE AFTER 359TH PAYMENT INTEREST- 596.57 X 6% X (1/12)- 4 CALCULATOR LOAN OPTIONS CAP STRU VALUE DILUTION. DOLLAR COST AVG MORTGAGE / EXPO Sheet1 . Sheet2. Shf14- rences: x261 13:47File Home nert Page Layout Formulas Data Review View dd-Ins as Cut aCopy Σ AutoSum Calibri ー E ゴWrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting DK214 DE DF DG DH DI DJ DK DL 204 205 206 207 208 209 210 A 211 212 213 214 B 215 216 217 218 C 219 220 221D LOAN RATE YEARS PERIODS IN A YEAR PMT 100000 6% 30 12 599.55 EXCEL PMT(DG205/DG207,DG206 DG207,-DG204) AFTER 57TH PAYMENT OUTSTANDING INSTALMENTS LOAN BALANCE 303 (360-57) $93,453.20 EXCEL PV(DG205/DG207,DG211,-DG208) AFTER 359TH PAYMENT = OUTSTANDING INSTALMENTS LOAN BALANCE- 1 (360-359) $ 596.57 PV(DG205/12,DG215,-DG208) LOAN BALANCE AT THE TIME OF IST INSTALMENT 100000 INTEREST-100000 X 6% X (1/12)- 500 $ 596.57 2.98 BOX LOAN BALANCE AFTER 359TH PAYMENT INTEREST- 596.57 X 6% X (1/12)- 4 CALCULATOR LOAN OPTIONS CAP STRU VALUE DILUTION. DOLLAR COST AVG MORTGAGE / EXPO Sheet1 . Sheet2. Shf14- rences: x261 13:47

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