Justin Case has purchased a 250 000 home by putting 20 percent down and taking out a 25 year mortgage with semi monthly payments of $600 to finance the rest. The payments will be made at the end of each period.

What was the quoted interest rate for the mortgage ( with semi annual compounding)?

To figure the APR why can one equate the present value of the mortgage 250 000 -50000 to the present value cash flow formula and solve for r?/ ( Through Trial and error??)

Meaning;

200 000 = C* 1/r ( 1 - 1/( 1+r)^n)

200 000= 600 / r ( 1-1/ ( 1+r) ^600

Please provide solution using other than Excel formula, however.I would prefer to understand the manualformula first.

600 dollar annual payment

25 years * 24 monthly payments = 600 =n

Then solve for r.

Thanks