What is the monthly periodic rate granted to you

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Question - You want to buy a condo valued at $ 284,000. The bank offers you a mortgage loan amortized over 25 years, with an interest rate, nominal annual capitalized semi-annually, of 2%.

Required -

1) What is the monthly periodic rate granted to you?

2) What monthly amount (paid end of period) will you repay for this loan?

3) After 5 years or 60 payments, what is the amount of capital remaining to be repaid?

To repay the loan balance in 3), you want to make a repayment increased by $ 100 over your monthly payment calculated in (2).

4) How many monthly payments will you pay off the loan balance? Calculate with your financial calculator?

Reference no: EM132882596

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