Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Principles Of Corporate Finance

Authors: Richard Brealey

10th Global Edition

0071314172, 9780071314176

More Books

Students also viewed these Finance questions