Answer:
No
Explanation:
Rob is considering their principal payment will be 123.38 everytime.
<u>It will increase through time while interest payment decrease.</u>
Month Beg Cuota Rate Interest Principal payment Ending
1 100,000 998.38 0.00875 875 123.38 99,877
2 99,877 999.38 0.00875 873.92 125.46 99,751
3 99,751 1000.38 0.00875 872.82 127.56 99,624
4 99,624 1001.38 0.00875 871.77 129.67 99,494
5 99,494 1002.38 0.00875 870.57 131.81 99,362
6 99,362 1003.38 0.00875 869.42 133.96 99,228
<u>The cuota and rate keep at the same level.</u>
But the interest decrease, because each time the principal is lower, giving place to a higher repayment.
The loan will repay at 20 year as state in the mortgage
