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Suppose you borrowed $400,000 for a home mortgage on January 1, 2010 with an annual interest...

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Advance Math

Suppose you borrowed $400,000 for a home mortgage on January 1,2010 with an annual interest rate of 3.5% per year compoundedmonthly.

(a) If you didn't make any payments and were only charged theinterest (and no late fees), how much would you owe on the mortgageon January 1, 2030?

(b) Suppose the balance on the mortgage is amortized over 20years with equal monthly payments at the end of each month. (Thismeans the unpaid balance on January 1, 2030 should be $0). What arethe monthly payments?

(c) How much interest was paid during the 20 years of themortgage?

(d) What is the unpaid balance on the mortgage on January 1,2015?

Answer & Explanation Solved by verified expert
4.3 Ratings (772 Votes)
partaIf you didnt make any payments and were only charged theinterestso formula isP400000r35 0035n12 for    See Answer
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