7. Ato Bekele is thinking of buying a G+2 building 5 years form now on a mortgage basis. The building will be used for office purpose for his new business that 500,000. The required down payment is Br. 100, 000, with monthly payment for 30 years at a rate of 12% compounded monthly. To cover t payment Bekele has established a sinking fund account in Dashen Bank, wb 10% interest compounded quarterly. Required: a) How much Bekele should deposit at the end of every quarter to meet the of the down payment? b) Determine the amount of monthly mortgage payment to be made to disc mortgage within 30 yrs. c) What is the amount of total interest paid on the mortgage? d) What is the total amount paid over the entire period of the mortgage?
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7. Ato Bekele is thinking of buying a G+2 building 5 years form now on a mortgage basis. The building will be used for office purpose for his new business that 500,000. The required down payment is Br. 100, 000, with monthly payment for 30 years at a rate of 12% compounded monthly. To cover t payment Bekele has established a sinking fund account in Dashen Bank, wb 10% interest compounded quarterly. Required: a) How much Bekele should deposit at the end of every quarter to meet the of the down payment? b) Determine the amount of monthly mortgage payment to be made to disc mortgage within 30 yrs. c) What is the amount of total interest paid on the mortgage? d) What is the total amount paid over the entire period of the mortgage?
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