Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You decide to take a30-year mortgage of $ 130 comma 000 $130,000 offered by the Bank of Montreal. Instead of making the monthly payment of

You decide to take a30-year mortgage of $ 130 comma 000

$130,000 offered by the Bank of Montreal. Instead of making the monthly payment of $ 785.93

$785.93 everymonth, you can make half the payment every two weeks(so that you will make 52 divided by 2 equals 26

522=26 payments ayear). How long will it take to pay off the mortgage if the EAR on the loan is 6.25 %

6.25%? (Note: Be careful not to round any intermediate steps less than six decimalplaces.)

The amount of time to pay off the loan is

nothing

weeks.(Round to the nearestinteger.)

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

Multinational Management

Authors: John B. Cullen

6th edition

1285094946, 1285094948, 9781285696744 , 978-1285094946

Students also viewed these Finance questions

Question

What did Tolman mean by intervening variable?

Answered: 1 week ago