You want to pay off your mortgage on something called an accelerated bi- weekly payment plan. You have a mortgage of $500,000 amortized over 25 years at a rate of 3.5 percent APR compounded semi-annually. a,What would the regular bi-weekly payment be? b. What would the accelerated bi- weekly payment be? c. How much quicker would you pay off the mortgage payment? d. How much interest would you save by doing the accelerated bi-weekly payment?
You want to pay off your mortgage on something called an accelerated bi- weekly payment plan. You have a mortgage of $500,000 amortized over 25 years at a rate of 3.5 percent APR compounded semi-annually. a,What would the regular bi-weekly payment be? b. What would the accelerated bi- weekly payment be? c. How much quicker would you pay off the mortgage payment? d. How much interest would you save by doing the accelerated bi-weekly payment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
Transcribed Image Text:You want to pay off your mortgage on
something called an accelerated bi-
weekly payment plan. You have a
mortgage of $500,000 amortized over
25 years at a rate of 3.5 percent APR
compounded semi-annually.
a,What would the regular bi-weekly
payment be?
b. What would the accelerated bi-
weekly payment be?
c. How much quicker would you pay
off the mortgage payment?
d. How much interest would you save
by doing the accelerated bi-weekly
payment?
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