The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage agreement, the Taylors increased the rounded monthly payment by 10%. How many fewer payments will the Taylors need to make to amortize the mortgage by increasing the payments? Select one: O a. 35 payments O b. 71 payments O c. 18 payments O d. 114 payments
The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage agreement, the Taylors increased the rounded monthly payment by 10%. How many fewer payments will the Taylors need to make to amortize the mortgage by increasing the payments? Select one: O a. 35 payments O b. 71 payments O c. 18 payments O d. 114 payments
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Question
![The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a mortgage of $136,000.00 amortized over 15
years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage
agreement, the Taylors increased the rounded monthly payment by 10%. How many fewer payments will the Taylors need to
make to amortize the mortgage by increasing the payments?
Select one:
O a. 35 payments
O b. 71 payments
18 payments
O d. 114 payments](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa86f14d3-956e-404f-9d7d-928ddcb2c9e2%2Fb25ace8a-4c35-4793-8f63-dd5abd21e103%2Fo8j81nr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Taylors agreed to monthly payments rounded up to the nearest $100.00 on a mortgage of $136,000.00 amortized over 15
years. Interest for the first five years was 8.5% compounded semi-annually. After 30 months, as permitted by the mortgage
agreement, the Taylors increased the rounded monthly payment by 10%. How many fewer payments will the Taylors need to
make to amortize the mortgage by increasing the payments?
Select one:
O a. 35 payments
O b. 71 payments
18 payments
O d. 114 payments
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