Oppenheimer Bank is offering a 30 -year mortgage with an APR of 4.75 % based on monthly
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Question:
Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.75 % based on monthly compounding. With this mortgage your monthly payments would be $2,030 per month. Inaddition, Oppenheimer Bank offers you the followingdeal: Instead of making the monthly payment of $2,030 everymonth, you can make half the payment every two weeks(so that you will make 52/2=26 payments peryear). With thisplan, how long will it take to pay off the mortgage if the EAR of the loan isunchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.
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