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Management Finance help

Economics
Tutor: None Selected Time limit: 1 Day

1.     You borrow $300,000 (as a mortgage loan) toward the purchase of a home at 6% interest. Your mortgage is for 30 years. What will be the total interest and the principal you pay during the last 10 years of the loan payments?

Apr 2nd, 2015

Mortgage loan = $300,000

Time period = 30 years

Total repayment in 30 years=$647,514.57

Total interest charged in 30 years=$347,514.57

Total interest charged in last 10 years=$347,514.57/30 * 10

                                                             = $115,838.19

Total principal amount paid in last 10 years=$300,000/30 *10

                                                                  = $100,000

Total interest and principal amount paid in last 10 years=$115,838.19 + $100,000

                                                                                         = $215,838.19

Apr 2nd, 2015

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Apr 2nd, 2015
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Apr 2nd, 2015
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