Question
A mortgage for a condominium had a principal balance of $46,100 that had to be amortized over the remaining period of 7 years. The interest
A mortgage for a condominium had a principal balance of $46,100 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.12% compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments, rounded up to the next whole number.
$612
$989
$605
$618
b. If the monthly payments were set at $762, by how much would the time period of the mortgage shorten?
1 years and 6 months
2 years and 7 months
9 years and 0 months
9 years and 1 months
c. If the monthly payments were set at $762, calculate the size of the final payment.
$1,423.11
-$99.44
$662.82
$41,979.95
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