Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A mortgage for a condominium had a principal balance of $ 4 6 , 4 0 0 that had to be amortized over the remaining

A mortgage for a condominium had a principal balance of $46,400 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 4.02% compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments.
Round up to the next whole number
b. If the monthly payments were set at $826, by how much would the time period of the mortgage shorten?
year(s)
months
c. If the monthly payments were set at $826, calculate the size of the final payment.
Round to the nearest cent

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

Quantitative Analysis for Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

12th edition

133507335, 978-0133507331

More Books

Students also viewed these Finance questions

Question

How do manufacturing costs flow through inventory accounts?

Answered: 1 week ago