Hat is the annual repayment cost to itco you may assume


An IT company (ITCO) has taken out a fixed-rate mortgage for its new office in Reading. The price for the new office is £1,000,000. ITCO has made an initial payment of £250,000 and has elected to spread the mortgage over 25 years at an interest rate of 7%. Appropriate tables are appended to this question paper. What is the annual repayment cost to ITCO (you may assume that the interest payable is calculated at the end of each year and that the first annual payment is made at the end of the first year)?

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Financial Management: Hat is the annual repayment cost to itco you may assume
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