A $130,000 mortgage was amortized over 10 years by monthly repayments. The interest rate on the mortgage was fixed at 5.60% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. b. Using the payment from part a., calculate the size of the final payment.
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.
6. A $130,000 mortgage was amortized over 10 years by monthly repayments. The interest rate on the mortgage was fixed at 5.60% compounded semi-annually for the entire period.
a. Calculate the size of the payments rounded up to the next $100.
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