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Priyanka takes out a 5 year mortgage for $752,757.00. The amortization period is 15 years, the interest rate is r(26) = 6.750%, and she will
Priyanka takes out a 5 year mortgage for $752,757.00. The amortization period is 15 years, the interest rate is r(26) = 6.750%, and she will make weekly payments. a) What is the effective weekly interest rate? b) How much are her weekly payments? c) How much does she still owe at the end of the mortgage term? d) When Priyanka renews her mortgage at the end of the term, with the same term and the same amortization period, her weekly payments don't change! What is the nominal rate (compounded bi-weekly) on her new mortgage?
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