adms_3530_assignment_1_fall_2012_solution

174426 at the end of year 5 60 12 5 payments have

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Unformatted text preview: alue of the last 240 payments). 240 0 0.002566806 $1435.17 ?? 1 1 1 1435.17 1 0.002566806 1 0.002566806 1.002566806 Page 6 of 18 1435.17 179.0127877 $256,913.78 Over the first 5 years (n = 60) Total Payment = $1435.17 60 $86110.20 Amount of principal paid = 300,000 256,913.78 43,086.22 Total Interest Paid = Total Payment – Amount of principal paid Total Interest Paid = $861 10.20 $43,086.22 $43023.98 FOR THE FIXED RATE MORTGAGE 25 12 300,000 300 ?? 0 4.99% 0.0499 Effective Rate (m = 2): 1 1 1 0.0499 2 1 0.050522503 1 0.004115752 Monthly rate (m = 12): 1 1 1.050522503 Calculating monthly payment: 1 1 1 300,000 1 0.004115752 1 0.004115752 1.004115752 300,000 172.1064147 300,000 172.1064147 Page 7 of 18 $1743.11 At the end of year 5, 60 (12 × 5) payments have been made. R...
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This note was uploaded on 03/27/2013 for the course ECON 1000 taught by Professor Paschakis during the Spring '08 term at York University.

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