A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $113,000.00 for 27 years at a 4.1% annual interest rate, with interest compounded monthly, and will make monthly payments of $577.25. (Round all answers to 2 decimal places.) a) What is the unpaid balance after 15 months? b) Over the 15 months in part (a), how much total interest did she pay?
A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $113,000.00 for 27 years at a 4.1% annual interest rate, with interest compounded monthly, and will make monthly payments of $577.25. (Round all answers to 2 decimal places.) a) What is the unpaid balance after 15 months? b) Over the 15 months in part (a), how much total interest did she pay?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $113,000.00 for 27 years at a 4.1% annual interest rate, with interest compounded monthly, and will make monthly payments of $577.25. (Round all answers to 2 decimal places.)
a) What is the unpaid balance after 15 months?
b) Over the 15 months in part (a), how much total interest did she pay?
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