Tutorial 2: Purchase of a Mortgage at a Discount
Enter the numbers in the boxes below. Do not enter a number in the box next to “Compute”.
Try with different required yields and see how the amount you can pay changes.
Example 2: You are considering the purchase of a mortgage. There are 12 payments a year of $859.68 a month. 59 payments are left. You wish to purchase this mortgage to yield you 13% p.a.
How much should you pay? Answer $37,332.66. As follows.
