A mortgage balance of $20,000.00 is renewed for the remaining amortization of 3 years at 8% compounded semi annually. a. Compute the size of the monthly payments. b. Determine the size of the last payment if the payments are rounded up to the next cent. c. Determine the size of the last payment if the payments are rounded up to the ten dollar.

A mortgage balance of $20,000.00 is renewed for the remaining amortization of 3 years at 8% compounded semi annually. a. Compute the size of the monthly payments. b. Determine the size of the last payment if the payments are rounded up to the next cent. c. Determine the size of the last payment if the payments are rounded up to the ten dollar.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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