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Professor Elmtwig makes a monthly payment of $ 1 6 0 0 on his mortgage. The original term of the mortgage is for 3 0
Professor Elmtwig makes a monthly payment of $ on his mortgage. The original term of the mortgage is for years at interest compounded semiannually. His lender suggests that if he makes biweekly payments of $ it will reduce how long it will take to pay off the mortgage. Answer the following questions for points each.
a How much did Professor Elmtwig originally borrow?
b How much faster will the mortgage be paid off if Elmtwig makes the biweekly payments payments per year HINT: You may use the formula to solve for N but the TVM functions on your calculator will be much faster. Express your answer in terms of years to two decimal places
c Is paying $ biweekly the same as paying $ monthly? Why or why not? HINT: How many payments per year?
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