How Much Principal Is Repaid in the 74th Payment Interval

question 84

Multiple Choice

How much principal is repaid in the 74th payment interval on a $142 300 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 7.44% compounded monthly.

• A) $257.16
• B) $275.16
• C) $527.16
• D) $572.16
• E) $574.16

Understand the concept of present value and how it applies to real and nominal cash flows.

Calculate the present value of bonds, including zero-coupon and coupon-bearing bonds.

Understand and apply the concepts of yield to maturity and coupon rates to determine bond values.

Calculate the price of bonds given different market conditions, including interest rates and time to maturity.

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