Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year, $130,000 loan at 8.1% by finding the payment size and the total interest paid over the life of the loan under each of the following conditions.(Round your answers to the nearest cent.)(a) Payments are monthly, and the rate is 8.1%, compounded monthly.payment size $total interest $(b) Payments are biweekly, and the rate is 8.1%, compounded biweekly. (Assume a standard 52-week year.)payment size $total interest$

Mortgages are a classic case of the present value of an ordinary annuity.The PV of an ordinary…

Answered: ortgages is, with payment (Round your…

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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The stated interest rate on your account is 5.6%, interest paid quarterly. Your effective rate of interest (APY) will be: (Keep 4 decimal places)

A loan of $7000.00 is repaid by payments of $450 at the end of every three months. Interest is 6% compounded quarterly. a) The number of payments is ________. b) The size of the final payment is $__________. (round answer to nearest cent)
Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.) p=$200, r=4%, t=5 years A. $10 B. $40 C. $160 D. $4
If the interest earned by a savings account paying an APR of 1% is compounded quarterly, what percent of the current balance is added to the account as interest every three months during the year? What about for 4%, 5%, and 7%? (Enter an exact answer and use decimals if needed.) percent of current balance added as interest for 1% APR: percent of current balance added as interest for 4% APR: percent of current balance added as interest for 5% APR: percent of current balance added as interest for 7% APR: 28
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970

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