Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.83% based on monthly compounding. With this mortgage, your monthly payments would be $1,956 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,956 every month, you can make half the payment every two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places. ... The number of payments will be 678.72. (Round to two decimal places.)
Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.83% based on monthly compounding. With this mortgage, your monthly payments would be $1,956 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,956 every month, you can make half the payment every two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places. ... The number of payments will be 678.72. (Round to two decimal places.)
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:Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.83% based on monthly compounding. With
this mortgage, your monthly payments would be $1,956 per month. In addition, Oppenheimer Bank offers you the
following deal: Instead of making the monthly payment of $1,956 every month, you can make half the payment every
two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take to pay off the
mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8
decimal places.
The number of payments will be 678.72. (Round to two decimal places.)
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