A couple purchases a home worth 256000 by paying 86000, Ask an Expert

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A couple purchases a home worth $256,000 by paying $86,000 deposit and then taking out a mortgage at j12 = 7%. The mortgage will be amortised over 25 years with equal payments.

(i) Determine the monthly payments they make and create a partial amortization schedule showing the distribution of the first 6 payments as to interest and principal

(ii) How much of the principal is repaid in the first 6 months

(iii) How much is the outstanding balance on the 20th year

(iv) Recalculate the payment amount from 20th year if the interest rate changes to j12 = 8% with no change in the period of the loan.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428940

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