What is the time required to repay the loan

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Reference no: EM131448292

You would like to purchase a house that costs 250,000 and you make a 10% down payment. You borrow the remaining at an APR of 12% semi-annually compounded, to be repaid in monthly installements for the next 25 years. How much do you pay every month? Suppose you decide to increase your monthly payment by an additional 1/12th of the present payment, what is the time required to repay the loan if you make that additional monthly payment every year?

Reference no: EM131448292

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