Five years ago, Marcus bought a house. He secured a mortgage from his bank for $2,000,000...
| Five years ago, Marcus bought a house. He secured a mortgage | |||||
|
from his bank for |
$2,000,000 |
. The mortgage had monthly |
|||
| payments for 20 years with an interest rate of 6.0% compounded monthly. However, after five years, it is time to renegotiate the mortgage. Interest rates have fallen to 4.5% compounded monthly, and Marcus still intends to make monthly payments and to pay back the debt over the remaining 15 years. | |||||
| a) | How much were Marcus' initial monthly payments? (1 mark) | Enter Answer | |||
| b) | What is the outstanding principal on his mortgage? (1 mark) | Enter Answer | |||
| c) | How much are Marcus' new monthly payments? (1 mark) | Enter Answer | |||
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Five years ago, Marcus bought a house.
He secured a mortgage
from his bank for
$2,000,000...
Five years ago, Marcus bought a house. He secured a mortgage from his bank for $420,000...
Five years ago, Marcus bought a house. He secured a mortgage from his bank for $420,000 . The mortgage had monthly payments for 20 years with an interest rate of 6.0% compounded monthly. However, after five years, it is time to renegotiate the mortgage. Interest rates have fallen to 4.5% compounded monthly, and Marcus still intends to make monthly payments and to pay back the debt over the remaining 15 years. Please provide rough work. a) How much were Marcus'...
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14. # -/7.18 points TanFin11 5.3.048. My Notes Five years ago, Diane secured a bank loan...
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14. # -/7.18 points TanFin11 5.3.048. My Notes Five years ago, Diane secured a bank loan of $340,000 to help finance the purchase of a loft in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 6%/year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to 2.5%/year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to...
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