ly payment be? 2. If you take the full term of the loan, how much interest will you have paid? 3. You decide to do some remodeling. You are looking at borrowing $7500 at the simple interest rate of 2% per year. You want to pay a maximum of $600 interest. How long will the loan need to be to meet this maximum interest of $600.00? 4. If you decide to put a $3000.00 bonus from your employment in a savings account that pays 2% interest compounded monthly, how much interest would you have earned after 4 years?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You are planning to purchase a house that will require some renovations.


1. You will have a $400,000 mortgage for 20 years at the rate of 4.25%. What will your
monthly payment be?
2. If you take the full term of the loan, how much interest will you have paid?
3. You decide to do some remodeling. You are looking at borrowing $7500 at the simple
interest rate of 2% per year. You want to pay a maximum of $600 interest. How long
will the loan need to be to meet this maximum interest of $600.00?
4. If you decide to put a $3000.00 bonus from your employment in a savings account that
pays 2% interest compounded monthly, how much interest would you have earned
after 4 years? 

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