Fatima received a $49,800 mortgage that is amortized over 6 years. She negotiated a fixed interest rate of 5.06% compounded semi-annually for the term with repayments made on a bi- weekly basis. a) Calculate the size of the payments (Round off to the nearest dollar). $ 8355.28 b) If the payments are rounded off to the nearest dollar, fill in the missing values of the partial amortization schedule below (All the other values are rounded off to two decimal places). Payment Number 0 1 2 155 156 Total Payment Amount PMT (S) S S S S *** Interest Portion INT ($) e S S SA S www Principal Portion PRN ($) SA SA A $49,800 Loan Balance BAL ($) सी. $49,800 $ $0 I X

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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L 15

Fatima received a $49,800 mortgage that is amortized over 6 years. She negotiated a fixed
interest rate of 5.06% compounded semi-annually for the term with repayments made on a bi-
weekly basis.
a) Calculate the size of the payments (Round off to the nearest dollar). $ 8355.28
b) If the payments are rounded off to the nearest dollar, fill in the missing values of the partial
amortization schedule below (All the other values are rounded off to two decimal places).
Payment
Number
0
1
2
155
156
Total
Payment
Amount PMT (S)
S
+A
S
Interest Portion
INT ($)
$
S
SA
SA
Principal
Portion PRN ($)
$49,800
Loan Balance
BAL ($)
S
$49,800
$0
Transcribed Image Text:Fatima received a $49,800 mortgage that is amortized over 6 years. She negotiated a fixed interest rate of 5.06% compounded semi-annually for the term with repayments made on a bi- weekly basis. a) Calculate the size of the payments (Round off to the nearest dollar). $ 8355.28 b) If the payments are rounded off to the nearest dollar, fill in the missing values of the partial amortization schedule below (All the other values are rounded off to two decimal places). Payment Number 0 1 2 155 156 Total Payment Amount PMT (S) S +A S Interest Portion INT ($) $ S SA SA Principal Portion PRN ($) $49,800 Loan Balance BAL ($) S $49,800 $0
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