A couple purchased a house 7 years ago for $375, 000. The house was financed by paying 20% down and signing a
30-year mort- gage at 6.5% on the unpaid balance. The net market value of the house is now $400, 000. Assume that the couple wishes to sell the house.
2.11 Exercises 75
a) How much equity (to the nearest dollar) does the family have in the house now, after making 84 monthly payments?
b) Find the first interest payment I1 and the 84th interest payment I84.
Recently Asked Questions
- Suppose that you borrow 100 million today. Assume that the current spot rate is 120/$ and that the 12 months forward rate (F/$) is F/$ = 119/$. Also, the 12-
- 100 Apple bonds (each with a $1,000 face value and a 3.25% coupon rate) that are five years from their 10-year maturity date How much is it worth after 5
- What is the future value of $900 in 25 years assuming an interest rate of 10 percent compounded semiannually?