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(Solved): Willie just bought a home and financed his purchase with a $1,000,000 6% 20- year mortgage. (a) What ...



Willie just bought a home and financed his purchase with a $1,000,000 6% 20- year mortgage. (a) What is Willie's monthly mortgage payment? (b) What will be the balance on Willie's mortgage after 12 years? 

1.  How did you get the monthly mortgage payment of $7,164.31?

2.  How did you get the balance of $545,169.90 after 12 years?



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Question a and 1) Here Present value (PV) = $1000000 Rate of interest per month (r) = 6%/12 = 0.5% or 0.005 Time period (n) =20*12 =240 months We need
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