Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer the following Mortgage- 91000 monthly payments for 15 years. interest rate is 8.7 compounded semi annually for a seven year term. A $91,000
Please answer the following Mortgage- 91000 monthly payments for 15 years. interest rate is 8.7 compounded semi annually for a seven year term.
A $91,000 mortgage is to be amortized by making monthly payments for 15 years. Interest is 8.7% compounded semi-annually for a seven-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the seven-year term. (c) If the mortgage is renewed for a seven-year term at 3% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is \$ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The balance at the end of the seven-year term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The size of the monthly payment for the renewal term is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started