You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-weekly (every two weeks) payments for 25 years. What will your payments be?Note: remember to round interest rates to four positive decimal places, and to roundfactors to four decimal places. That is our convention in the course.O 2183-2217O 2218-22522253-22872288-2322None of the above

There are two methods to charge interest on the loan taken. One is the simple interest method and…

Answered: You borrow $1,000,000 at 3% compounded…

You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi- weekly (every two weeks) payments for 25 years. What will your payments be?

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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Question

You borrow $1,000,000 at 3% compounded semi-annually and will pay it off over bi-
weekly (every two weeks) payments for 25 years. What will your payments be?
Note: remember to round interest rates to four positive decimal places, and to round
factors to four decimal places. That is our convention in the course.
O 2183-2217
O 2218-2252
2253-2287
2288-2322
None of the above

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