A mortgage for a condominium had a principal balance of $46,400 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 3.72% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $720 O $1,175 O $711 O $729 b. If the monthly payments were set at $820, by how much would the time period of the mortgage shorten? O O years and 9 months O 1 years and 10 months o 4 years and 6 months O 5 years and 8 months c. If the monthly payments were set at $820, calculate the size of the final payment. O $1,036.19 O $605.00 O $216.85 O $52,295.11
A mortgage for a condominium had a principal balance of $46,400 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 3.72% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments, rounded up to the next whole number. O $720 O $1,175 O $711 O $729 b. If the monthly payments were set at $820, by how much would the time period of the mortgage shorten? O O years and 9 months O 1 years and 10 months o 4 years and 6 months O 5 years and 8 months c. If the monthly payments were set at $820, calculate the size of the final payment. O $1,036.19 O $605.00 O $216.85 O $52,295.11
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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Transcribed Image Text:A mortgage for a condominium had a principal balance of $46,400 that had to be
amortized over the remaining period of 6 years. The interest rate was fixed at 3.72%
compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments, rounded up to the next whole number.
O $720
O $1,175
O $711
O $729
b. If the monthly payments were set at $820, by how much would the time period of
the mortgage shorten?
O O years and 9 months
O 1 years and 10 months
o 4 years and 6 months
o 5 years and 8 months
c. If the monthly payments were set at $820, calculate the size of the final payment.
O $1,036.19
O $605.00
O $216.85
O $52,295.11
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