Five years ago, the Pandeys purchased a house and took out a mortgage of $900,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5-year term. The bank calculated their monthly payment should be $4,164. How much would the final payment be assuming the same interest rate over the 25 years? $3,648.37 O $4.671.20 O $3,639.94 -$507.20 O $3.656.80

Five years ago, the Pandeys purchased a house and took out a mortgage of $900,000 from the BMO bank. They amortized the mortgage over 25 years at 2.79% compounded semi-annually for a 5-year term. The bank calculated their monthly payment should be $4,164. How much would the final payment be assuming the same interest rate over the 25 years? $3,648.37 O $4.671.20 O $3,639.94 -$507.20 O $3.656.80

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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