A mortgage for a condominium had a principal balance of $40,800 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $664 O $1,295 $657 $672

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A mortgage for a condominium had a principal balance of $40,800 that had to be
amortized over the remaining period of 6 years. The interest rate was fixed at 5.42%
compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments, rounded up to the next whole number.
O $664
O $1,295
$657
$672
Transcribed Image Text:A mortgage for a condominium had a principal balance of $40,800 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $664 O $1,295 $657 $672
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