The balance on a mortgage was $42,600 and an interest rate of 4.25% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly payments were set at $1,412, how long would it take to pay off the mortgage? Express the answer in years and months, rounded to the next payment period (C). If the monthly payments were set at $1,412, calculate the size of the final payment.
The balance on a mortgage was $42,600 and an interest rate of 4.25% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. Round up to the next whole number b. If the monthly payments were set at $1,412, how long would it take to pay off the mortgage? Express the answer in years and months, rounded to the next payment period (C). If the monthly payments were set at $1,412, calculate the size of the final payment.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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The balance on a mortgage was $42,600 and an interest rate of 4.25% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage.
a. Calculate the size of the monthly payments. Round up to the next whole number
b. If the monthly payments were set at $1,412, how long would it take to pay off the mortgage? Express the answer in years and months, rounded to the next payment period
(C). If the monthly payments were set at $1,412, calculate the size of the final payment.
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