Maurice took out a 25-year loan from his bank for $165,000 at an apr of 2.4%, compounded monthly. if his bank charges a prepayment fee of 6 months' interest on 80% of the balance, what prepayment fee would maurice be charged for paying off his loan 11 years early?

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Kierra Salas

Business

30 April, 03:36

Maurice took out a 25-year loan from his bank for $165,000 at an apr of 2.4%, compounded monthly. if his bank charges a prepayment fee of 6 months' interest on 80% of the balance, what prepayment fee would maurice be charged for paying off his loan 11 years early?

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Liberty · Answer 1

165.000$ al APR 2.4%, The montly payments would be 731.94

Total payment: $219,580.64, total interest $54,580.64

25 years period - 14 years : 11 years x 12 months: 132 months x 731,94: 96.616,08 (total debt)

96.616,08 x 80%: $77.292,864 x 1.2% (6 months interest) : $927,514 this would be the prepayment fee charge.