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
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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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
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