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(Loan amortization​) To buy a new​ house, you must borrow $150,000. To do​ this, you take...

(Loan amortization​) To buy a new​ house, you must borrow $150,000. To do​ this, you take out a $150,000​, 20​-year, percent mortgage. Your mortgage​ payments, which are made at the end of each year​ (one payment each​ year), include both principal and 9 percent interest on the declining balance. How large will your annual payments​ be?

The amount of your annual payments will be ​$ ​(Round to the nearest​ cent.)

Solutions

Expert Solution

PV = 150,000

n = 20

r = 9%

Annual payments will be $16,431.97

jeff jeffy answered 2 years ago
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