Question 1Mr. and Mrs. Trump have ust purchased an $1000000 house and have made a down payment of $10000. They can amort...
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Question 1
Mr. and Mrs. Trump have ust purchased an $1000000 house and have made a down payment of $10000. They can amortize the balance at 9.5% for 25years.
1.What are the monthly payments at the end of each month?
2.What is their total interest payment?
3.After 15 years,what is the equity value?
Question 2
A bond has a face amount of $5000 and matures in 4 years. The nominal interest rate is 9.5%. What is the price of the bond to yeild a true interest rate of 9%?
Question 3
You set up a higher education fund in which you pay $500 at the beginning of each month. How much money will you have accumulated in the fund after 20 years,if your fund earns 2.25% compounded motnthly?