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A mortgage for a condominium had a principal balance of $45,300 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $605 O $1,004 O $599 O $612

A mortgage for a condominium had a principal balance of $45,300 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $605 O $1,004 O $599 O $612

Essentials Of Investments
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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A mortgage for a condominium had a principal balance of $45,300 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $605 O $1,004 O $599 O $612 b. If the monthly payments were set at $705, by how much would the time period of the mortgage shorten? O 1 years and 1 months O 2 years and 2 months O 6 years and 6 months O 7 years and 8 months c. If the monthly payments were set at $705, calculate the size of the final payment. O $1,264.41 O $144.45 O $560.95 O $52,283.71
Transcribed Image Text:A mortgage for a condominium had a principal balance of $45,300 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $605 O $1,004 O $599 O $612 b. If the monthly payments were set at $705, by how much would the time period of the mortgage shorten? O 1 years and 1 months O 2 years and 2 months O 6 years and 6 months O 7 years and 8 months c. If the monthly payments were set at $705, calculate the size of the final payment. O $1,264.41 O $144.45 O $560.95 O $52,283.71
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