The interest rate for the first five gears of a $265,000 mortgage loan is 4.25% compounded semiannually.

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The interest rate for the first five gears of a $265,000 mortgage loan is 4.25% compounded semiannually. Monthly payments are calculated using a 20-year amortization.

a. What will be the principal balance at the end of the five-year term?

b. What will be the new payments if the loan is renewed at 5.5% compounded semiannually and the original amortization period is continued?

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Fundamentals Of Business Mathematics In Canada

ISBN: 9781259370151

3rd Edition

Authors: F. Ernest Jerome, Jackie Shemko

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Question Posted: Oct 21, 2020 04:27 AM

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The interest rate for the first five gears of a $265,000 mortgage loan is 4.25% compounded semiannually.

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Given a b For renewal of the loan after 5 years PV 265000 ...View the full answer

Fundamentals Of Business Mathematics In Canada

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