A mortgage for a condominium had a principal balance of $44, 700 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 4.42% compounded semi-annually and payments were made monthly. Full solutions should be shown on separate sheets of paper. Submit your solutions. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly payments were set at $808, by how much would the time period of the mortgage shorten? year(s) months

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
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A mortgage for a condominium had a principal balance of $44, 700 that had to be amortized over the
remaining period of 6 years. The interest rate was fixed at 4.42% compounded semi-annually and
payments were made monthly. Full solutions should be shown on separate sheets of paper. Submit your
solutions. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly
payments were set at $808, by how much would the time period of the mortgage shorten? year(s)
months
Transcribed Image Text:A mortgage for a condominium had a principal balance of $44, 700 that had to be amortized over the remaining period of 6 years. The interest rate was fixed at 4.42% compounded semi-annually and payments were made monthly. Full solutions should be shown on separate sheets of paper. Submit your solutions. a. Calculate the size of the payments. Round up to the next whole number b. If the monthly payments were set at $808, by how much would the time period of the mortgage shorten? year(s) months
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