Question
You want to pay off your mortgage on something called an accelerated bi-weekly payment plan your parents told you . You have a mortgage of
You want to pay off your mortgage on something called an accelerated bi-weekly payment plan your parents told you . You have a mortgage of $590,000 amortized over 34 years at a rate of 4.4 percent APR compounded semi-annually.(Assume 52 weeks a year.)
a.What would the regular bi-weekly payment be?(Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$"sign in your response.)
Regular bi-weekly payment$
b.What would the accelerated bi-weekly payment be?(Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$"sign in your response.)
Accelerated bi-weekly payment$
c.How long will it take to pay off the mortgage payment?(Do not round your intermediate calculations. Round your answer to 3 decimal places.)
Pay off periodyears
d.How much interest would you save by doing the accelerated bi-weekly payment?(Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$"sign in your response.)
Savings in interest payment$
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