Question: Can someone help why n = 360 please? Thank you 13. Suppose the Bank of Montreal is offering a 30-year mortgage with an EAR of

Can someone help why n = 360 please? Thank you 13. Suppose the Bank of Montreal is offering a 30-year mortgage with an

Can someone help why n = 360 please? Thank you

13. Suppose the Bank of Montreal is offering a 30-year mortgage with an EAR of 6.80%. If you plan to borrow $150,000, what will your monthly payment be? 13. Plan: Draw a timeline to better understand when the cash flows are occurring. Since $150,000 is the present value of an annuity of mortgage payments, determine the amount of the mortgage payments. Execute: 0 1 2 3 4 360 150,000 - -C The monthly interest rate is, 1/12 (1.068)"\2 1 = 0.5497367% Solve for the annuity payments that give the of the mortgage ($150,000). $150,000 1 1 0.005497367 360 (1.005497367)" = $957.66 N I/Y PV PMT FV Excel Formula 0.550% 150,000.00 0 Given: 360 Solve for PMT: (957.68) =PMT(0.00549736708252291,360,150000,0) Evaluate: The monthly mortgage payment is $957.66

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