Q1) You have just taken out a mcetgage of 150,000 for 30 years. with monthly payments at 6% interest. The same day you close on the mortgage you receive a 523.000 gdl from your parents to be applied to the mortgage principal.
What amount of time will now be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment? (Assume any residual partial payment amount is added to the last payment )
Q2) Jason W. bought a Mercedes when he came to I:TM as an engineering student The Mercedes was purchased by taking a loan that was to be paid of in 20 equal, quarterly payments. The Interest rate on the loan was 12%. Four years later. after Jason made his le payment.
He got married (no more dating!) and sold the Mercedes to his buddy /lumace S. Houston made arrangements with Jason's bank to refinance the loan and to pay Jason's unpaid balance by making 16 equal, quarterly payments at the same interest rate that Jason was paying.
Houston flunked out of UT hi (too many dates') 31/4 years later, after hawing made his 13th payment; he then sold the eu toleif ht. Jeff paid the bank S2000 cash (he had a good summer job!) to pay the loan balance. how much had Jason borrowed to buy the new Mercedes"