Question
i)A mortgage of $80,000 is taken out on a property and to be repaid over 25 years. Using this equation find monthly repayments $x.
80000(1.07)^25 - 12x(1+1.07+.107^2 + ... +1.07^24).
ii)Calculate as percentages how much of the original mortgage is paid off in each of the first two years.
80000(1.07)^25 - 12x(1+1.07+.107^2 + ... +1.07^24).
ii)Calculate as percentages how much of the original mortgage is paid off in each of the first two years.
Answers
Your given equation makes no sense in terms of <b>monthly payments</b>.
Your problem does not contain any information about the rate of interest, but from
the "formula" stated in ... (1.07)^25 .., I would say there is an annual rate of 7% for 25 years, but without any reference to compounding.
See if you can fix your post and I will take a look at it
Your problem does not contain any information about the rate of interest, but from
the "formula" stated in ... (1.07)^25 .., I would say there is an annual rate of 7% for 25 years, but without any reference to compounding.
See if you can fix your post and I will take a look at it
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