Tutorial: 1 | Tutorial: 2 | Tutorial: 3 | Tutorial: 4 | Tutorial: 5 | Tutorial: 6

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.