A $140,000 mortgage was amortized over 25 years by monthly repayments. The interest rate on the mortgage was fixed at 4.10% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. Round up to the next 100 b. Using the payment from part a., calculate the size of the final payment. Round to the nearest cent
A $140,000 mortgage was amortized over 25 years by monthly repayments. The interest rate on the mortgage was fixed at 4.10% compounded semi-annually for the entire period. a. Calculate the size of the payments rounded up to the next $100. Round up to the next 100 b. Using the payment from part a., calculate the size of the final payment. Round to the nearest cent
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 6FPE
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![A $140,000 mortgage was amortized over 25 years by monthly repayments. The
interest rate on the mortgage was fixed at 4.10% compounded semi-annually for the
entire period.
a. Calculate the size of the payments rounded up to the next $100.
Round up to the next 100
b. Using the payment from part a., calculate the size of the final payment.
Round to the nearest cent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4c245a6-dec2-4a27-9419-4a5be97d36da%2F9fff9a5b-37eb-433b-9b49-b81dd36303f5%2Fadvbnr9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A $140,000 mortgage was amortized over 25 years by monthly repayments. The
interest rate on the mortgage was fixed at 4.10% compounded semi-annually for the
entire period.
a. Calculate the size of the payments rounded up to the next $100.
Round up to the next 100
b. Using the payment from part a., calculate the size of the final payment.
Round to the nearest cent
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