Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thuan has a variable rate mortgage for $ 9 5 5 , 9 5 5 . 0 0 . The term of the mortgage is

Thuan has a variable rate mortgage for $955,955.00. The term of the mortgage is 5 years, and the amortization period is 25 years. Thuan will make bi- weekly payments and the mortgage rate is (365)=4.250%.
a) How much are the bi-weekly payments? $ 2389.75
b) What is the outstanding balance at the end of 4 years? $ 862404.77
c) After 4 years, the interest rate changes to 3.250%, but the payment amount stays the same. What is the outstanding balance at the end of the term of the mortgage? $ 827776.8
d) What is the trigger rate for the mortgage (after 4 years)? Give the nominal rate compounded daily. (Remember, write 3.456 not 0.03456.) $
7.496

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Day Trading Strategies And Risk Management

Authors: Richard N. Williams

1st Edition

979-8863610528

More Books

Students also viewed these Finance questions

Question

What is the principle of thermodynamics? Explain with examples

Answered: 1 week ago