Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compour this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank following deal: Instead of making the monthly payment of $2,000 every month, you can make half the two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take t mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculation decimal places. The number of payments will be (Round to two decimal places.)
Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compour this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank following deal: Instead of making the monthly payment of $2,000 every month, you can make half the two weeks (so that you will make 52/2 = 26 payments per year). With this plan, how long will it take t mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculation decimal places. The number of payments will be (Round to two decimal places.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Question
![Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compounding. With
this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank offers you the
following deal: Instead of making the monthly payment of $2,000 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
(Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9badad4b-f1ea-405b-a5ee-ec8054ae1c7e%2Fb62dcd6d-e887-4e1a-9683-23ea81411c4d%2Fdkdjho_processed.png&w=3840&q=75)
Transcribed Image Text:Oppenheimer Bank is offering a 30-year mortgage with an APR of 5.25% based on monthly compounding. With
this mortgage, your monthly payments would be $2,000 per month. In addition, Oppenheimer Bank offers you the
following deal: Instead of making the monthly payment of $2,000 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
(Round to two decimal places.)
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