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Question
Formosan Freedom Co. purchased an office at newly built World Trade Center at $2,812,500. The Company obtained a 30 year fixed rate mortgage at a 7.2% annual rate and pay 20% down. After five years, the Company has excess cash and decides to pay off the remaining balance. Due to several QEs in the past years, the Company can obtain a mortgage of annual interest rates at 7%. How much must the Company pay to retire the mortgage (to the nearest dollar)?a. a $2,225,330
b. b $2,122,426
c. c $2,015,678
d. d $1,999,998
Answer
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