The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are calculated using a 20-year amortization. 8. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Principal balance b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $[ per month
The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are calculated using a 20-year amortization. 8. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Principal balance b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $[ per month
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 15P
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Question
![The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are
calculated using a 20-year amortization.
a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final
answer to 2 decimal places.)
Principal balance
b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is
continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Payment $[
per month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F99300d6c-8385-4737-8180-274e25fd4a69%2Fdcd6d5e9-3948-4b03-91e1-6cdee96b51c3%2Fss1lyy_processed.png&w=3840&q=75)
Transcribed Image Text:The interest rate for the first four years of an $81,000 mortgage loan is 7.5% compounded semiannually. Monthly payments are
calculated using a 20-year amortization.
a. What will be the principal balance at the end of the four-year term? (Do not round intermediate calculations and round your final
answer to 2 decimal places.)
Principal balance
b. What will be the monthly payments if the loan is renewed at 4.9% compounded semiannually (and the original amortization period is
continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Payment $[
per month.
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