A down payment of 25% is made towards the purchase of a $360,000 house and took out a loan for the rest at 2.4% compounded semi-annually for a 30-year amortization period, and monthly payments. By how much will the amortization period be shortened if the borrower makes a $15,000 prepayment at the end of 3 years.

Answer rating: 100% (QA)

Step 1 Calculate the monthly interest rate Semiannual interest rate 24 2 12 Convert to monthly rate ... View the full answer