What amount of time will be required to pay off the mortgage

Assignment Help Financial Management

Reference no: EM131497083

You have just taken out a mortgage of for 30 years, with monthly payments at 6% interest. The same day you close on the mortgage you receive a $25,000 gift from your parents to be applied to the mortgage principal. What amount of time will be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment? (Assume any residual partial payment amount is added to the last payment.)

Reference no: EM131497083

Questions Cloud

Company historical average pe as benchmark : Using the company’s historical average PE as a benchmark, what is the target stock price one year from today

Sensitivity analysis-variable cost figure : We are evaluating project that costs $1,390,000, has six-year life and has no salvage value. What is sensitivity of OCF to changes in variable cost figure?

What is the holding period yield on the two year bond : What is the holding period yield on the two year bond assuming it has a face value of $100?

Managing intellectual capital : Here are three issues that come up in managing intellectual capital. In what specific ways could corporate culture drive a firm's market value?

What amount of time will be required to pay off the mortgage : What amount of time will be required to pay off the mortgage if you continue to make the original monthly payments?

Inspired by the events in the montreal cement market : Inspired by the events in the Montreal cement market in 1966. Be sure to explain your reasoning in both game-theoretic and economic terms.

Find the future values of these ordinary annuities : Find the future values of these ordinary annuities.

Which case the property is transferred to the lender : A property is expected to have NOI of $100,000 the first year. which case the property is transferred to the lender.

Present value for various discounting periods : Find the present value of $500 due in the future under each of these conditions: Why do the differences in the PVs occur?

User Account

All Pages