A home buyer buys a house for $225, 000. She pays 20% cash, and takes a fixed - rate mortgage for the remaining over ten years at a quoted APR of 6.26% with semi - annual compounding. If she makes biweekly payments at the end of each period, which of the following is closest to each of her payments? Assume 26 biweekly periods per year. 1. $1,165.07 2. $1,160.76 3. $937.50 4. $928.56 5. $915.08
A home buyer buys a house for $225, 000. She pays 20% cash, and takes a fixed - rate mortgage for the remaining over ten years at a quoted APR of 6.26% with semi - annual compounding. If she makes biweekly payments at the end of each period, which of the following is closest to each of her payments? Assume 26 biweekly periods per year. 1. $1,165.07 2. $1,160.76 3. $937.50 4. $928.56 5. $915.08
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
Problem 1PS
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Question
A home buyer buys a house for $225, 000. She pays 20% cash, and takes a fixed - rate mortgage for the remaining over ten years at a quoted APR of 6.26% with semi - annual compounding. If she makes biweekly payments at the end of each period, which of the following is closest to each of her payments? Assume 26 biweekly periods per year.
1. $1,165.07
2. $1,160.76
3. $937.50
4. $928.56
5. $915.08
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