A mortgage of $575,000 is to be amortized by end-of-month payments over a 25-year period. The interest rate on the mortgage is 4% compounded semi-annually. Round your final answers to 2 decimals. Blank #1: Calculate the principal portion of the 34th payment? Blank #2: Calculate the interest portion of the 87th payment? Blank #3: Calculate the total interest in payments 63 to 84 inclusive. Blank #4: How much will the principal be reduced by payments in the third year?

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
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A mortgage of $575,000 is to be amortized by end-of-month payments over a 25-year period. The interest rate on the
mortgage is 4% compounded semi-annually. Round your final answers to 2 decimals.
Blank #1: Calculate the principal portion of the 34th payment?
Blank #2: Calculate the interest portion of the 87th payment?
Blank #3: Calculate the total interest in payments 63 to 84 inclusive.
Blank #4: How much will the principal be reduced by payments in the third year?
Transcribed Image Text:A mortgage of $575,000 is to be amortized by end-of-month payments over a 25-year period. The interest rate on the mortgage is 4% compounded semi-annually. Round your final answers to 2 decimals. Blank #1: Calculate the principal portion of the 34th payment? Blank #2: Calculate the interest portion of the 87th payment? Blank #3: Calculate the total interest in payments 63 to 84 inclusive. Blank #4: How much will the principal be reduced by payments in the third year?
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