enheimer Bank is offering a 30-year mortgage with an APR of 4.88% based on monthly compounding. With this mortgage, your monthly payments would be $2,050 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $2,050 everymonth, you can make half the payment every two weeks (so that you will make 52/2=26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places. a. What is the number of payments? b. How long will it take to p
Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.88% based on monthly compounding. With this mortgage, your monthly payments would be $2,050 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $2,050 everymonth, you can make half the payment every two weeks (so that you will make 52/2=26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.
a. What is the number of payments?
b. How long will it take to pay off the mortgage if the EAR of the loan is unchanged?
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