Monthly mortgage payments


Please use Excel to assist me in understanding how to answer the following questions:

Question 1. Mike deposited $1,000 in a savings account. The annual interest rate is 10 percent, compounded semiannually. How many years will it take for his money to grow to $2,653.30?

Question 2. Anna has $30,000 for a down payment on a house and wants to borrow $120,000 from a mortgage banker to purchase a $150,000 house.

The mortgage loan is to be repaid in monthly installments over a thirty-year period. The annual interest rate is 9 percent.

How much will Anna's monthly mortgage payments be?

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Accounting Basics: Monthly mortgage payments
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