Oppenneimer Bank is offering a 30-year mortgage with an APR of 4.86% based on monthly compounding. With this mortgage your monthly payments would be $1,952 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,952 every month, you can make half he 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 loa s unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places. The number of payments will be which is approximately years. (Round to two decimal places and enter the years rounded to the nearest whole number.)
Oppenneimer Bank is offering a 30-year mortgage with an APR of 4.86% based on monthly compounding. With this mortgage your monthly payments would be $1,952 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,952 every month, you can make half he 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 loa s unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places. The number of payments will be which is approximately years. (Round to two decimal places and enter the years rounded to the nearest whole number.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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![Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.86% based on monthly compounding. With this mortgage your monthly payments would be
$1,952 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,952 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
which is approximately
years. (Round to two decimal places and enter the years rounded to the nearest whole number.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7986b84-3c9d-489d-9437-e65030bcb5d0%2F720f619a-4b3a-4494-95be-2f7d7eb85237%2Fi7q3cpi_processed.png&w=3840&q=75)
Transcribed Image Text:Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.86% based on monthly compounding. With this mortgage your monthly payments would be
$1,952 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,952 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
which is approximately
years. (Round to two decimal places and enter the years rounded to the nearest whole number.)
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