document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1200838>Question 1200838</A>: <I><SPAN STYLE=\"word-break: break-all;\"> John has just purchased an apartment at a price of $5,000,000. He made a down-payment of <BR>\n" );
document.write( "$2,000,000 and financed the remaining with a 30-year mortgage at APR 12%, compounded <BR>\n" );
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document.write( "(a) Determine the size of the fixed month-end payments. (5 marks)<BR>\n" );
document.write( "(b) Calculate the amount John still owes the bank right after the 120th payment was made. <BR>\n" );
document.write( " (5 marks)<BR>\n" );
document.write( "(c) Calculate the interest payment and the amount of principal paid in the 121st loan repayment. <BR>\n" );
document.write( " (5 marks) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #835046 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=835046\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> i used excel to solve this.<BR>\n" );
document.write( "i first used a financial calculator to solve for the payment required.<BR>\n" );
document.write( "the payment required at the end of each momth is equal to 30858.37791.\r<BR>\n" );
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document.write( "after the 120th payment is made, john still owes the bank $2,802,539.87.\r<BR>\n" );
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document.write( "the interest on the 121st payment is equal to $28,025.40	\r<BR>\n" );
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document.write( "the principal on the 121st payment is equal to $2,832.98\r<BR>\n" );
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document.write( "this can be seen in the excerpts from the excel worksheet shown below:\r<BR>\n" );
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document.write( "the remaining balance at the end of the 120th payment is multiplied by .01 to get the interest at the end of the 121st payment.<BR>\n" );
document.write( "that is then subtracted from the payment to get the principal at the end of the 121st payment. </SPAN>\n" );
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