Question
A $100,000 mortgage has a 10-year amortization with monthly payments. The interest rate is 3.5%, compounded semi-annually. (20 marks total between the 3 parts) a.
A $100,000 mortgage has a 10-year amortization with monthly payments. The interest rate is 3.5%, compounded semi-annually. (20 marks total between the 3 parts)
a. What is the monthly payment? (10 marks)
b. What is the outstanding balance at the end of 5 years? (5 marks)
c. What would the monthly payment be if payments were due at the beginning of the month instead of the end of the month?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
