Determine the level of the payment

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Reference no: EM132202070

Question - Suppose nominal AR rates are .03 and f =. 03. You amortize a house loan of $200,000 over 30 years with constant nominal monthly payments. Your current take-home pay is $4,500 per month and you expect the purchasing power of your income to remain constant over the next 30 years.

a. Determine the level of the payment?

b. What percent on your take home pay does the payment require initially?

c. What percent of your take home pay will the last payment require?

Reference no: EM132202070

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