A mortgage of $550,000 is to be amortized by end-of-month payments over a 25- year period. The interest rate on the mortgage is 8% compounded semiannually. Round your final answers to 2 decimals. 1. Calculate the interest portion of the 26st payment? 2. Calculate the principal portion of the 45th payment? 3. Calculate the total interest in payments 25 to 37 inclusive. 4. How much will the principal be reduced by payments in the third year?

A mortgage of $550,000 is to be amortized by end-of-month payments over a 25- year period. The interest rate on the mortgage is 8% compounded semiannually. Round your final answers to 2 decimals. 1. Calculate the interest portion of the 26st payment? 2. Calculate the principal portion of the 45th payment? 3. Calculate the total interest in payments 25 to 37 inclusive. 4. How much will the principal be reduced by payments in the third year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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