Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.)
Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Your have just sold your house for
$1,000,000
in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of
$750,000.
The mortgage is currently exactly
18.50
years old, and you have just made a payment. If the interest rate on the mortgage is
6.25%
(APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.)Question content area bottom
Part 1
The discount rate is
enter your response here%
per month. (Round to five decimal places.)Part 2
The monthly mortgage payment is
$enter your response here.
(Round to the nearest cent.)Part 3
The remaining balance is
$enter your response here.
(Round to the nearest dollar.)Part 4
The cash that remains after payoff of the mortgage is
$enter your response here.
(Round to the nearest dollar.)Expert Solution
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