4. Ten years ago Jim took a mortgage loan of $200,000 to be repaid in 20 equal annual installments of $30,197.34. The ba
Posted: Wed Jul 06, 2022 6:41 pm
4. Ten years ago Jim took a mortgage loan of $200,000 to berepaid in 20 equal annual installments of $30,197.34.
The bank has told him that they would accept $145,000 today aspayment in full for the remainder of the loan.
What is the balance on this loan?
If we assume that Jim has the money, what interest rate must heearn on alternative investments in order not to accept the bankoffer?
The bank has told him that they would accept $145,000 today aspayment in full for the remainder of the loan.
What is the balance on this loan?
If we assume that Jim has the money, what interest rate must heearn on alternative investments in order not to accept the bankoffer?