Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A mortgage balance of $30,000 is to be repaid over a 12 -year term by equal monthiy payments at 5.7% compounded semi-annually. At the request

image text in transcribed
A mortgage balance of $30,000 is to be repaid over a 12 -year term by equal monthiy payments at 5.7% compounded semi-annually. At the request of the mortgngor, the monthly payments were set at $400. (a) How many payments will the mortgagor have to make? (b) What is the size of the last parment? (c) Determine the diflecence between the total amount rocuired to amortize the mortgape with the contractual monthly payments rounded to the nearest cent and the total actual ampunt paid. (a) The mortgagor wil have to make payments. (Round up to the nearest whole number.) (b) The size of the last payment will be s (Round the final arswer to the nearest cont os needed. Round all intermediate values fo six decimal ploces as needed.) (c) The difierence is 5 (Round the final answer to the neareat 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

Financial Econometrics

Authors: Peijie Wang

1st Edition

0415426693, 978-0415426695

More Books

Students also viewed these Finance questions