A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The loan will be $224,000 at 6 percent interest for 20 years. Required: a. What would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly to the borrower? b. Assume that the bi-weekly loan was available for 5.75%. What would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly for the borrower?

• Required A
• Required B

What would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly for the borrower? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Maturity period		Years
Total monthly payments
Total bi-weekly payments
Choice of borrower

• Required B

Assume that the bi-weekly loan was available for 5.75%. What would be the maturity period if payments are bi-weekly? How much will the borrower pay in total under each payment option? Which choice would be less costly for the borrower? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Maturity period		years
Total monthly payments
Total bi-weekly payments
Choice of borrower