Question
The interest rate for the first five years of an $91,000 mortgage loan is 8.5% compounded semiannually. Monthly payments are calculated using a 30-year amortization.
The interest rate for the first five years of an $91,000 mortgage loan is 8.5% compounded semiannually. Monthly payments are calculated using a 30-year amortization. |
a. | What will be the principal balance at the end of the five-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
Principal balance | $ |
b. | What will be the monthly payments if the loan is renewed at 5.9% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) |
Payment $ per month
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