Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A $86,000 mortgage is to be repaid over a twenty-year period by monthly payments rounded up to the next-higher $100. Interest is 8.3% compounded semi-annually

image text in transcribed

A $86,000 mortgage is to be repaid over a twenty-year period by monthly payments rounded up to the next-higher $100. Interest is 8.3% compounded semi-annually (a) Determine the number of rounded payments required to repay the mortgage (b) Determine the size of the last payment. (c) Calculate the amount of interest saved by rounding the payment up to the next higher $100 versus rounding the payment to the nearest cent. (a) The number of rounded payments required to repay the mortgage is (Round up to the nearest whole number.) (b) The size of the last payment will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The amount of interest saved is so (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Financing Asset-Based Financial Engineering

Authors: John D Finnerty

3rd Edition

1118421841, 9781118421840

More Books

Students also viewed these Finance questions

Question

Understand a department managers role in locating job candidates

Answered: 1 week ago