You just found the house of your dreams. The price of the house is ?$300,000. You have been qualified to get a mortgage loan with AAA Bank. The mortgage loan is for 30 years at an annual interest rate of 24?%.
Part? (A):
How many periods (the value of n) do we need to use in computing the monthly payments (PMT)?
What is the rate per period to use in solving the monthly payments for the mortgage loan %?
Part? (B):
What is the balance of the mortgage loan after 2 ?year(s) of? payments?
To compute the balance of the mortage loan after 2 year, what is the value of n (number of periods) to use?
Part? (C):
After 2 years of? payments, you want to add extra money to the monthly payments so that you will be able to pay off the mortgage loan in
10 years. How much do you have to add to your previously computed monthly payments in order to accomplish? this?
How much are the new monthly payments (in order to pay off the loan in 10 years?
These calculations are after you have made payments for 2 year (s). What is the value of n in the calculations of the new new monthly payments?