A $170,000 mortgage at 1.75% compounded semi-annually with a 25 year amortization requires monthly payments. How much will the amortization period be shortened by if a prepayment of $14,000 is made at the end of the sixth year? Answer in years and months.
A $170,000 mortgage at 1.75% compounded semi-annually with a 25 year amortization requires monthly payments. How much will the amortization period be shortened by if a prepayment of $14,000 is made at the end of the sixth year? Answer in years and months.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A $170,000 mortgage at 1.75% compounded semi-annually with a 25 year
amortization requires monthly payments. How much will the amortization period be
shortened by if a prepayment of $14,000 is made at the end of the sixth year? Answer
in years and months.
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Setting
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