a. What is the size of the quarterly payments? (Round to the nearest cent) b. How much will the amortization period be shortened by if weekly payments of $675 are made instead of the quarterly payments? ___years ____months (Express the answer in years and months, rounded to the next payment period) c. How much interest will be saved if the weekly payments of $675 are made instead of the quarterly payments? (Round to the nearest cent)

a. What is the size of the quarterly payments? (Round to the nearest cent) b. How much will the amortization period be shortened by if weekly payments of $675 are made instead of the quarterly payments? _years __months (Express the answer in years and months, rounded to the next payment period) c. How much interest will be saved if the weekly payments of $675 are made instead of the quarterly payments? (Round to the nearest cent)

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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A 25- year, $340,000 mortgage at 1.60% compounded semi- annually was settled with quarterly payments . a. What is the size of the quarterly payments? b. How much will the amortization period be shortened by if weekly payments of $650 are made instead of the quarterly payments?
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