Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.95% based on monthly compounding. With this mortgage, your monthly payments would be $1,964 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,964 every month, you can make half the payment every two weeks (so that you will make 52/2-26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.

Oppenheimer Bank is offering a 30-year mortgage with an APR of 4.95% based on monthly compounding. With this mortgage, your monthly payments would be $1,964 per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of $1,964 every month, you can make half the payment every two weeks (so that you will make 52/2-26 payments per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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