Suppose you bought a house with a mortgage of $245,000 borrowed at 5.5% fixed APR for...
Suppose you bought a house with a mortgage of $245,000 borrowed at 5.5% fixed APR for 30 years with monthly payments and compounding. After making the required payments for 4 years, you are ready to sell the house and move even though the market value of your home has fallen. How much would you need to receive from the sale of your house (after all transaction costs) to be able to pay off the mortgage?
Homework Answers
Amount one would need to receive from the sale of house to br able to pay off the mortgage=FV(5.5%/12,12*4,PMT(5.5%/12,12*30,-245000),-245000)=230638.93
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Suppose you bought a house with a mortgage of $245,000 borrowed
at 5.5% fixed APR for...
Suppose you bought a house with a mortgage of $245,000 borrowed at 5.5% fixed APR for 30 years wi...
Suppose you bought a house with a mortgage of $245,000 borrowed at 5.5% fixed APR for 30 years with monthly payments and compounding. After making the required payments for 4 years, you are ready to sell the house and move even though the market value of your home has fallen. How much would you need to receive from the sale of your house (after all transaction costs) to be able to pay off the mortgage?
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The mortgage on your house is five years old. It required
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