A mortgage for a condominium had a principal balance of $42,600 that had to be amortized over the remaining period of 4 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly payments were set at $1,139, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $1,139, calculate the size of the final payment. Round to the nearest cent

A mortgage for a condominium had a principal balance of $42,600 that had to be amortized over the remaining period of 4 years. The interest rate was fixed at 5.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly payments were set at $1,139, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $1,139, calculate the size of the final payment. Round to the nearest cent

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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