Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.8% based on monthly compounding. With
Question:
Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.8% based on monthly compounding. With this mortgage your monthly payments would be $1974 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1974 every month, you can make half the payment every two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged?
AppendixcLO1
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
Question Posted: