A 30-year mortgage of $100,000 at 5.5% interest compounded monthly, with three discount points, has a monthly

Question:

A 30-year mortgage of $100,000 at 5.5% interest compounded monthly, with three discount points, has a monthly payment of $567.79. Assume that the loan is expected to be terminated after 8 years, at which time the unpaid balance will be $86,837.98. Show that the effective mortgage rate is 6%?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Finite Mathematics and Its Applications

ISBN: 978-0134768632

12th edition

Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair

Question Posted: