Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer part a, b and c using formula method A mortgage for a condominium had a principal balance of $41,700 that had to be amortized

image text in transcribed

image text in transcribed

answer part a, b and c using formula method

A mortgage for a condominium had a principal balance of $41,700 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.72% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $503 $936 $498 $507 b. If the monthly payments were set at $603, by how much would the time period of the mortgage shorten? 1 years and 6 months O 2 years and 7 months O 9 years and 0 months 9 years and 1 months c. If the monthly payments were set at $603, calculate the size of the final payment. 0 $1,128.32 0 $76.30 O $526.93 O $72,094.26

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions