You are thinking of purchasing a house. The house costs S 431,000. You have $ 45,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 20-year mortgage that requires annual payments and has an interest rate of 4 % per year. What will be your annual payment if you sign this mortgage?

You are thinking of purchasing a house. The house costs S 431,000. You have $ 45,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 20-year mortgage that requires annual payments and has an interest rate of 4 % per year. What will be your annual payment if you sign this mortgage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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