Question
Gail wants to buy a property with a first mortgage of $395,000 at 7.25% compounded semi-annually not in advance, and a second mortgage of $200,000
Gail wants to buy a property with a first mortgage of $395,000 at 7.25% compounded semi-annually not in advance, and a second mortgage of $200,000 at 3.95% interest compounded semi-annually, not in advance. What is the average mortgage rate for the two mortgages (rounded to one decimal place)?
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Step: 1
To calculate the average mortgage rate for the two mortgages we need to consider the total interest paid on both mortgages and then divide it by the t...
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Personal Finance
Authors: Thomas Garman, Raymond Forgue
12th edition
9781305176409, 1133595839, 1305176405, 978-1133595830
