On March 1, you borrow $239,000 to buy a house. The mortgage rate is 7.75%. The...

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Finance

On March 1, you borrow $239,000 to buy a house. The mortgagerate is 7.75%. The loan is to be repaid in equal monthly paymentsover 20 years. The first payment is due on April 1. How much of thethird payment applies to the principal balance? (Assume that eachmonth is equal to 1/12 of a summer).

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Amount Borrowed PV 239000 No of monthly repayment to be made N 20 years x 12 240 Monthly rate of interest I 775pa 12 06458 per month See Answer

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On March 1, you borrow $239,000 to buy a house. The mortgagerate is 7.75%. The loan is to be repaid in equal monthly paymentsover 20 years. The first payment is due on April 1. How much of thethird payment applies to the principal balance? (Assume that eachmonth is equal to 1/12 of a summer).

On March 1, you borrow $239,000 to buy a house. The mortgage rate is 7.75%. The...

50.1K

Verified Solution

Question

Finance

On March 1, you borrow $239,000 to buy a house. The mortgagerate is 7.75%. The loan is to be repaid in equal monthly paymentsover 20 years. The first payment is due on April 1. How much of thethird payment applies to the principal balance? (Assume that eachmonth is equal to 1/12 of a summer).

Answer & Explanation Solved by verified expert

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