A 25- year, $340,000 mortgage at 1.60% compounded semi- annually was settled with quarterly payments . a. What is the size of the quarterly payments? b. How much will the amortization period be shortened by if weekly payments of $650 are made instead of the quarterly payments?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A 25- year, $340,000 mortgage at 1.60% compounded semi- annually was settled with quarterly payments .
a. What is the size of the quarterly payments?
b. How much will the amortization period be shortened by if weekly payments of $650 are made instead of the quarterly payments?
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