Five years ago, the Pandeys purchased a house and took out a mortgage of $900,000 from the BMO 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 $4,164. How much would the final payment be assuming the same interest rate over the 25 years? $3,648.37 O $4.671.20 O $3,639.94 -$507.20 O $3.656.80
Five years ago, the Pandeys purchased a house and took out a mortgage of $900,000 from the BMO 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 $4,164. How much would the final payment be assuming the same interest rate over the 25 years? $3,648.37 O $4.671.20 O $3,639.94 -$507.20 O $3.656.80
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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![Five years ago, the Pandeys purchased a house and took out a mortgage of
$900,000 from the BMO 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 $4,164.
How much would the final payment be assuming the same interest rate over the 25
years?
O $3,648.37
O $4.671.20
$3,639.94
$507.20
O $3.656.80](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63485652-cf25-4ea8-9bd6-b73d997a0939%2F3f369e6f-f14d-42fa-9d47-17d971910fa8%2Fv2rqzlb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Five years ago, the Pandeys purchased a house and took out a mortgage of
$900,000 from the BMO 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 $4,164.
How much would the final payment be assuming the same interest rate over the 25
years?
O $3,648.37
O $4.671.20
$3,639.94
$507.20
O $3.656.80
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