(22-23) You borrow $100,000 Constant Amortization Mortgage (CAM)at 10% for 20 years, assuming annual payment, answer-
22. What is your total payment for year 11?
a. 5,000
b. 6,000
c. 8,000
d. 10,000
23. What is the total principle you paid in year 11?
a. 2,000
b. 3,000
c. 4,000
d. 5,000
(22-23) You borrow $100,000 Constant Amortization Mortgage (CAM)at 10% for 20 years, assuming annual payment, answer-
22. What is your total payment for year 11?
a. 5,000
b. 6,000
c. 8,000
d. 10,000
23. What is the total principle you paid in year 11?
a. 2,000
b. 3,000
c. 4,000
d. 5,000
Related questions
Finance
1. What is the present value of $800 to be received at the end of eight years, assuming the following annual interest rate?
a. 4 percent, discounted annually
b. 8 percent, discounted annually
c. 20 percent, discounted quarterly
d. 0 percent
2. BASIC 13. Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $10,000. Assuming that you desire a 10 percent return on your initial investment, compute the net present value of the two alternatives and evaluate their relative attractiveness:
| Investment 1 | Investment 2 | ||
| Cash Flows | Year | Cash Flows | Year |
| 5,000 | 1 | 8,000 | 1 |
| 6,000 | 2 | 7,000 | 2 |
| 7,000 | 3 | 6,000 | 3 |
| 8,000 | 4 | 5,000 | 4 |
