Emily received a 25 year loan of $295,000 to purchase a house. The interest rate on the loan was 2.40% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent b. What is the balance of the loan at the end of year 2? $0.00 Round to the nearest cent c. By how much will the amortization period shorten if Emily makes an extra payment of $30,000 at the end of year 2? o months o years
Emily received a 25 year loan of $295,000 to purchase a house. The interest rate on the loan was 2.40% compounded semi-annually. a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent b. What is the balance of the loan at the end of year 2? $0.00 Round to the nearest cent c. By how much will the amortization period shorten if Emily makes an extra payment of $30,000 at the end of year 2? o months o years
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Transcribed Image Text:Emily received a 25 year loan of $295,000 to purchase a house. The interest rate on the
loan was 2.40% compounded semi-annually.
a. What is the size of the monthly loan payment?
$0.00
Round to the nearest cent
b. What is the balance of the loan at the end of year 2?
$0.00
Round to the nearest cent
c. By how much will the amortization period shorten if Emily makes an extra payment
of $30,000 at the end of year 2?
o years
o months
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