Show all work 63 end of mortgage loan is repaid with annual installment payments

Question

Show all work 63 end of mortgage loan is repaid with annual installment payments payable at the The each year for 30 years. Each interest rate charged on the loan balance is: +10% in the years 6k + 1, +9% in the years 6k +2, .7% in the years 61+3, .8% in the years 6k + 4, .75% in the years 6k + 5, #8.5% in the years 6k + 6, where k -o, original amount of the ( correct value). subsequent payment is 2% higher than the previous one. I, 2,3,4. The principal repaid in the 28-th installment is 33,990. Find the mortgage loan (choose the answer choice that is the closest to the

Explanation / Answer

Rate of Interest in 28 Month falls under 6K+4 where k is 4 , so it should be 8%

Monthly payment- 33,990

Using the PV formula in Excel with data of 28 Month, Interest rate 8 %, The Total value should be of About $ 380,000.

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