Daysha bought a house with a mortgage of $395,100. The mortgage is being financed with an interest rate of 4.77% compounded monthly. Daysha will make payments of $1,405. Hint: Use this formula (a) How many payments will Daysha have to make to repay the mortgage? payment(s) (b) How long, in months, will it take Daysha to pay off the mortgage? (Hint: In an annuity due, payments are made at the beginning of each period.) month(s) 4

Daysha bought a house with a mortgage of $395,100. The mortgage is being financed with an interest rate of 4.77% compounded monthly. Daysha will make payments of $1,405. Hint: Use this formula (a) How many payments will Daysha have to make to repay the mortgage? payment(s) (b) How long, in months, will it take Daysha to pay off the mortgage? (Hint: In an annuity due, payments are made at the beginning of each period.) month(s) 4

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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