You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You have a mortgage of $480,000 amortized over 16 years at a rate of 2.5 percent APR compounded semi-annually. (Assume 52 weeks a year.) a. What would the regular bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Regular bi-weekly payment $ b. What would the accelerated bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Accelerated bi-weekly payment $ c. How much quicker would you pay off the mortgage payment? (Round your answer to 3 decimal places.) Pay off period years d. How much interest would you save by doing the accelerated bi-weekly payment? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Savings in interest payment
You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You have a mortgage of $480,000 amortized over 16 years at a rate of 2.5 percent APR compounded semi-annually. (Assume 52 weeks a year.)
a. What would the regular bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Regular bi-weekly payment $
b. What would the accelerated bi-weekly payment be? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Accelerated bi-weekly payment $
c. How much quicker would you pay off the mortgage payment? (Round your answer to 3 decimal places.)
Pay off period
years
d. How much interest would you save by doing the accelerated bi-weekly payment? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Savings in interest payment
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