(24-25). You are buying a house for $120,000. With a 20% down payment, the lender will finance the remainder of the purchase price with a 30 year CPM with bi-weekly payments at 7% annual rate. (hint: there are 26 bi-weekly periods in one year)

24. Approximately how many payments does it take to reduce the loan balance to $60,000?

a. 296

b. 362

c. 484

d. 578

25. If at the end of year 5 you made one payment of $20,000 in addition to the regular bi-weekly payment, approximately how many payments will it take thereafter to pay off the loan if you keep making the same payment?

a. 302

b. 383

c. 412

d. 478