What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and wer to 2 decimal places.) cipal balance Vhat will be the monthly payments if the loan is renewed at 5.3% compounded semiannually (and the original am tinued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) ment per month

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
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The interest rate for the first four years of an $85,000 mortgage loan is 79% compounded semiannually. Monthly payments are
calculated using a 25-year amortization.
a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final
answer to 2 decimal places.)
Principal balance
b. What will be the monthly payments if the loan is renewed at 5.3% compounded semiannually (and the original amortization period is
continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Payment
per month
Transcribed Image Text:The interest rate for the first four years of an $85,000 mortgage loan is 79% compounded semiannually. Monthly payments are calculated using a 25-year amortization. a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Principal balance b. What will be the monthly payments if the loan is renewed at 5.3% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment per month
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