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Calculate the amount for the regular instalments

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You have had your offer of $1.2 million on a house accepted and have arranged with the bank for a 30 year mortgage equal to 90% of the sale price. The agreement calls for monthly repayments and the bank will charge a nominal annual interest rate of 6% (assumed unchanged throughout the entire loan period).

Problem (a) If the first payment is due one month after the loan is received, calculate the amount for the regular instalments.

Problem (b) After the 60th payment, you have decided to pay out the mortgage. What is the payout amount?

Reference no: EM132613678

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