A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.02% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. b. If the monthly payments were set at $636, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $636, calculate the size of the final payment.
A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.02% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. b. If the monthly payments were set at $636, by how much would the time period of the mortgage shorten? year(s) months c. If the monthly payments were set at $636, calculate the size of the final payment.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![A mortgage for a condominium had a principal
balance of $41,400 that had to be amortized over the
remaining period of 8 years. The interest rate was
fixed at 3.02% compounded semi-annually and
payments were made monthly.
a. Calculate the size of the payments.
b. If the monthly payments were set at $636, by how
much would the time period of the mortgage
shorten?
year(s) months
c. If the monthly payments were set at $636, calculate
the size of the final payment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b8b5da6-433e-4238-8d26-f9304b6f8018%2F662948b0-5860-4a57-8884-fec4558e7a3a%2F3qy860l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A mortgage for a condominium had a principal
balance of $41,400 that had to be amortized over the
remaining period of 8 years. The interest rate was
fixed at 3.02% compounded semi-annually and
payments were made monthly.
a. Calculate the size of the payments.
b. If the monthly payments were set at $636, by how
much would the time period of the mortgage
shorten?
year(s) months
c. If the monthly payments were set at $636, calculate
the size of the final payment.
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