a. Find your monthly payment. Round up to the next dollar b. Find the size of the last payment if the interest rate stays constant. Round to the nearest cent c. How long would it take you to pay off your mortgage using biweekly payments of half the monthly payments, instead of monthly payments? (Round the payment up to the next cent)
a. Find your monthly payment. Round up to the next dollar b. Find the size of the last payment if the interest rate stays constant. Round to the nearest cent c. How long would it take you to pay off your mortgage using biweekly payments of half the monthly payments, instead of monthly payments? (Round the payment up to the next 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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Transcribed Image Text:Question 11 of 12
You take a 25-year, $100,000 mortgage with a rate of j2 = 7.00%. (Accrued interest is rounded to the nearest penny
at each payment)
a. Find your monthly payment.
Round up to the next dollar
b. Find the size of the last payment if the interest rate stays constant.
Round to the nearest cent
c. How long would it take you to pay off your mortgage using biweekly payments of half the monthly payments,
instead of monthly payments? (Round the payment up to the next cent)
years
Round to two decimal places if necessary
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