A mortgage for a condominium had a principal balance of $47,400 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 3.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. SO Round up to the next whole number b. If the monthly payments were set at $829, by how much would the time period of the mortgago shorton?
A mortgage for a condominium had a principal balance of $47,400 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 3.42% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. SO Round up to the next whole number b. If the monthly payments were set at $829, by how much would the time period of the mortgago shorton?
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 $47,400 that had to be
amortized over the remaining period of 6 years. The interest rate was fixed at 3.42%
compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments.
SO
Round up to the next whole number
b. If the monthly payments were set at $829, by how much would the time period of
the mortgage shorten?
0 year(s)
c. If the monthly payments were set at $829, calculate the size of the final payment.
$0.00
0 months
Round to the nearest cent
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