Compute numbers and explicate five different possibilites

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Reference no: EM131020314

We receive a $400,000 mortgage from the bank for 30 years. A VP at the bank, tells us to fully amortize the mortgage we need to pay $5,000 monthly. First, we would like to know how much the yearly mortgage rate the bank charges us. Second, we are interested in paying off the total amount in year 7, since we estimate that our parents will start giving us a portion of their immense estate which is valued at $10 million. Third, we ask the banker how much we need to give the bank in 7 years. Fourth, our financial advisor informs us that our parents should not give us anymore than $60,000 in 12 years, which we promptly pass along to the bank paying a portion of the loan. Fifth, the VP of the bank tells us that we may pay that amount without penalty and tells us the exact additional months we need to pay. Compute the numbers and explicate the five different possibilities.

Reference no: EM131020314

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