Five years ago, the Muncasters purchased a house and took out a mortgage of $600,000 from theBMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5-year term. The bank calculated their monthly payment should be $2,776.What percentage of the mortgage have they paid off after making 3 years of payments?91.32%26.02%6.96%8.68%2.09%4

Mortgage loans are paid by monthly payment that carry payment for interest and payment of loan also.

Answered: BMO bank. They amortized the mortgage…

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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BMO bank. They amortized the mortgage over 25 years at 2.79% compounc year term. The bank calculated their monthly payment should be $2,776. What percentage of the mortgage have they paid off after making 3 years o 91.32% 26.02% 6.96%