Customer expect to be able to liquidate from mutual fund

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As a bank loan officer, you are considering making a mortgage loan to a customer who wants to buy a house. Purchase price is $300,000. The loan will be 80% of the purchase price. APR of the loan is 4.00% for 30 years. a. What is the monthly loan payment for this loan? b. What if instead of buying a house, your customer took the payment from (from part a.) and invested in a mutual fund every month for the next 30 years. (first payment starts at the end of the month like an ordinary annuity). If the mutual fund is expected to return 10% per year (after fees), how much money would your customer expect to be able to liquidate from the mutual fund at the end of the 30-year period?

Reference no: EM131849498

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