Question

On January 1, 2003 Mike took out a 30-year mortgage loan in the amount of 200,000 at an annual nominal interest rate of 6% compounded monthly. The loan was to be repaid by level end-of-month payments with the first payment on January 31, 2003. Mike repaid an extra 10,000 in addition to the regular monthly payment on each December 31 in the years 2003 through 2007. Calculate a) the total Mike would pay if he just made the original 30 years of payment. b) How much does he pay if he makes the extra $10,000 payments at the ends of 2003 through 2007?

          On January 1, 2003 Mike took out a 30-year mortgage loan in the
amount of 200,000 at an annual nominal interest rate of 6%
compounded monthly. The loan was to be repaid by level end-of-month
payments with the first payment on January 31, 2003. Mike repaid an
extra 10,000 in addition to the regular monthly payment on each
December 31 in the years 2003 through 2007.
Calculate
a) the total Mike would pay if he just made the original 30
years of payment.
b) How much does he pay if he makes the extra $10,000
payments at the ends of 2003 through 2007?

Added by Guillermo G.

Question

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