You just borrowed $300,000 to buy a house. You plan to pay off your loan by...
You just borrowed $300,000 to buy a house. You plan to pay off your loan by making equal monthly payments over the next 20 years. Suppose the interest rate your bank charges you is an APR of 6%, compounded semi-annually.
What is the principal payback for the last month in Year 20?
| $2126.07 |
| $2136.57 |
| $1250 |
| $1500 |
| $1879.22 |
Homework Answers
Loan outstanding in last-1 month in Year 20=FV((1+6%/2)^(2/12)-1,12*20-1,PMT((1+6%/2)^(2/12)-1,12*20,300000),300000)=2126.07
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