You borrowed $660,000 in your mortgage to purchase a property. The mortgage requires equal annual payments at the end of each year. You need to pay off the mortgage in 15 years at an APR of 8.35%. The interest is compounded annually. How much of the first annual payment are paid towards repaying the principal? Oa. $23,653.18 O b. $51,420.90 Oc. $48,911.08 Od. $21,311.62 Oe. $18,211.08

You borrowed $660,000 in your mortgage to purchase a property. The mortgage requires equal annual payments at the end of each year. You need to pay off the mortgage in 15 years at an APR of 8.35%. The interest is compounded annually. How much of the first annual payment are paid towards repaying the principal? Oa. $23,653.18 O b. $51,420.90 Oc. $48,911.08 Od. $21,311.62 Oe. $18,211.08

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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