Max wants to buy a house, to put on his lot, to hold his giant cheese refrigerator. Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after the purchase of the house. a) How much are Max’s monthly payments? b) How much of the 300 the payment goes to the principal and how much goes to interest? TVM FORMULA
Max wants to buy a house, to put on his lot, to hold his giant cheese refrigerator. Max buys a $2,000,000 house and makes a $500,000 down payment. The mortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after the purchase of the house. a) How much are Max’s monthly payments? b) How much of the 300 the payment goes to the principal and how much goes to interest? TVM FORMULA
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Max wants to buy a house, to put on his lot, to hold his giant cheese refrigerator. Max buys a
$2,000,000 house and makes a $500,000 down payment. The
mortgage is for 30 years at 4% compounded monthly. The first payment will be made one month after the
purchase of the house.
a) How much are Max’s monthly payments?
b) How much of the 300
the payment goes to the principal and how much goes to interest?
TVM FORMULA
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