Jane Ericsson has just purchased a 62 square-meter down-town
flat at NOK 3,500,000 financed with
20% of her own capital. Financing the rest of the purchase, a
20-year NOK 2,800,000 ordinary annuity
mortgage at 3.15% per year species end-of-month payments of
interest including principal over the amortization period.
The rest payment is due one month from today. A two percent
initiation fee charged by the lender requires Jane to increase her
equity contribution by NOK 56,000.
It is commonly expected...