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Posted on Jul 15, 2024

Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay your mortgage: Use your Christmas

Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year (that is, pay your monthly payment due on that day twice). Assume that the mortgage has an original term of 30

years and has an APR of 12%.

a. If you take out your mortgage on January 1 (so that your first payment is due on February 1), and you make your first extra payment at the end of the first year, in what year will you finish repaying your mortgage?

b. If you take out your mortgage on July 1 (so that the first payment is on August 1), and you make the extra payment each January, in how many months will you pay off your mortgage?

c. How will the amount of time it takes to pay off the loan given this strategy vary with the interest rate on the loan?

The loan payment is

(Round to the nearest cent.)

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The con payments (Round to the nearest cont) wou tried to you te has a very smator taking on third of the time it takes to repay your mortgage Use your viss bors to make an extra payment on January 1 of each year that is pay your mon payment due on that day twice Assure the more as an original term of 30 years and has a APR of 125 you take out your mortgage on January so that your payment is on February and you make your prend of the retown what year we you are you more? hit you take your more only in the payment is on Aug 1, and you make the payment achary in how many mors wou pay off your mo? How the wount of time to pay of the longes egy vary with the forest rate on the If you take your morgage on January to that your first payment is on February 11 and you make your first extra payment and of the first year in what you will you finish pay your mortgage? The loan payment is Round to the nearest cant) Your hendes you he has a very simple trick for one-third of the time takes to pay your mortgage Use your Christus to make a payment on any of each year that is pay your monthly payment on that day twice that the mortgage has an orgalm of 30 years and has an APR of 12% at you take out your mariage on January ( your first payment is due on February and you make your first extra payment at the end of the first year in what year will you finish paying your moniga? b. you take out your mortgage only so that the first payment is on August and you make the car payment achary in how many oth will you pay off your mortgage? c. How will the amount of time it takes to pay of the languis egy vary with the rest on the loan a. you take out your mortgage on January 10 at your first payment is due on February 1). and you make your intra payment at the end of the flow in what you will you finish paying your mone? The icon payment is sound to the nearest cert) Your friends you hetus a very nice for taking on the theme pay your more Use your bus to make any of each year, pay your money only issue hargaanongino 30 years and has an AR of 12% a. If you take out your mortgage on January (out your first payment is dus on February and you make your payment the end of the first year what you will younishing your mortgage b. you take out your mortgage on 1 (0 that the payment is on Augustand you make the payment chain how many more will you pay off your mo? c. How will the amount of time takes to pay of the loan given this strategy vary with the interest rate on the at you take out your mortgage on January (so that your first payment is due on February 19 and you make you first payment at the end of the first year, in what you will your repare your mortgage? Theban payment (Round to the nearest cent) Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year (that is, pay your monthly payment due on that day twice). Assume that the mortgage has an original term of 30 years and has an APR of 12% a. If you take out your mortgage on January 1 (so that your first payment is due on February 1), and you make your first extra payment at the end of the first year, in what year will you finish ropaying your mortgage? b. If you take out your mortgage on July 1 (so that the first payment is on August 1), and you make the extra payment each January, in how many months will you pay off your mortgage? C. How will the amount of time it takes to pay off the loan given this strategy vary with the interest rate on the loan? a. If you take out your mortgage on January 1 (so that your first payment is due on February 1), and you make your first extra payment at the end of the first year, in what year will you finish repaying your mortgage? The loan payment is $(Round to the nearest cent.) Your Trond tells you he has a very simple concretand of the time it takes to repay you more you visostomer anton Jawy 1 of each year is pay you are on that day Mac) A that the mortgage has an orginal term of years and has an APR 12 a. If you take out your mortgage on January that your first payment is out on February 1 and you make you for payment at the end of the low, in what you will you have you more? b. if you take out your mortgage on July to that the first payment is on Augustand you make a payment och how many you pay of your c. How will the amount of time it takes to pay off the toon given this strategy wyr the sale on the a. If you take out your more on January 1o that your first payment is due on February 11, and you make you for payment at the end of the fast year in what you will you finish paying your mone? The con payments (Round to the nearest cont) wou tried to you te has a very smator taking on third of the time it takes to repay your mortgage Use your viss bors to make an extra payment on January 1 of each year that is pay your mon payment due on that day twice Assure the more as an original term of 30 years and has a APR of 125 you take out your mortgage on January so that your payment is on February and you make your prend of the retown what year we you are you more? hit you take your more only in the payment is on Aug 1, and you make the payment achary in how many mors wou pay off your mo? How the wount of time to pay of the longes egy vary with the forest rate on the If you take your morgage on January to that your first payment is on February 11 and you make your first extra payment and of the first year in what you will you finish pay your mortgage? The loan payment is Round to the nearest cant) Your hendes you he has a very simple trick for one-third of the time takes to pay your mortgage Use your Christus to make a payment on any of each year that is pay your monthly payment on that day twice that the mortgage has an orgalm of 30 years and has an APR of 12% at you take out your mariage on January ( your first payment is due on February and you make your first extra payment at the end of the first year in what year will you finish paying your moniga? b. you take out your mortgage only so that the first payment is on August and you make the car payment achary in how many oth will you pay off your mortgage? c. How will the amount of time it takes to pay of the languis egy vary with the rest on the loan a. you take out your mortgage on January 10 at your first payment is due on February 1). and you make your intra payment at the end of the flow in what you will you finish paying your mone? The icon payment is sound to the nearest cert) Your friends you hetus a very nice for taking on the theme pay your more Use your bus to make any of each year, pay your money only issue hargaanongino 30 years and has an AR of 12% a. If you take out your mortgage on January (out your first payment is dus on February and you make your payment the end of the first year what you will younishing your mortgage b. you take out your mortgage on 1 (0 that the payment is on Augustand you make the payment chain how many more will you pay off your mo? c. How will the amount of time takes to pay of the loan given this strategy vary with the interest rate on the at you take out your mortgage on January (so that your first payment is due on February 19 and you make you first payment at the end of the first year, in what you will your repare your mortgage? Theban payment (Round to the nearest cent) Your friend tells you he has a very simple trick for taking one-third of the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year (that is, pay your monthly payment due on that day twice). Assume that the mortgage has an original term of 30 years and has an APR of 12% a. If you take out your mortgage on January 1 (so that your first payment is due on February 1), and you make your first extra payment at the end of the first year, in what year will you finish ropaying your mortgage? b. If you take out your mortgage on July 1 (so that the first payment is on August 1), and you make the extra payment each January, in how many months will you pay off your mortgage? C. How will the amount of time it takes to pay off the loan given this strategy vary with the interest rate on the loan? a. If you take out your mortgage on January 1 (so that your first payment is due on February 1), and you make your first extra payment at the end of the first year, in what year will you finish repaying your mortgage? The loan payment is $(Round to the nearest cent.)