Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You decide to take a 30 -year mortgage of $160,000 offered by the Bank of Montreal. Instead of making the monthly payment of $991.82 every

image text in transcribed

You decide to take a 30 -year mortgage of $160,000 offered by the Bank of Montreal. Instead of making the monthly payment of $991.82 every month, you can make half the payment every two weeks (so that you will make 522=26 payments a year). How long will it take to pay off the mortgage if the EAR on the loan is 6.50% ? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of time to pay off the loan is weeks. (Round to the nearest integer.)

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

Step: 3

blur-text-image

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

Financial Statements

Authors: Inc. BarCharts

1st Edition

1423223837, 978-1423223832

More Books

Students also viewed these Finance questions

Question

The paleolithic age human life, short write up ?

Answered: 1 week ago

Question

Does the numerical analysis add value for the individual?

Answered: 1 week ago

Question

Ask the person to identify with whom they will share the feedback.

Answered: 1 week ago