Question: how long will it take to pay off the loan. there are extra quarterly payments done every year. also this is not in the question
how long will it take to pay off the loan. there are extra quarterly payments done every year. also this is not in the question but the monthly payment is $1610.464. please read question carefully
You purchase a home with a 5%/year fixed-rate, 30-year mortgage. Interest is compounded monthly. The amount borrowed is $300,000. Every three months, you make an additional quarter payment which is used to pay off principal (e.g., at EOM 1 payment = A, at EOM 2 payment = A, at EOM 3 payment = 1.25A). How long will it take to pay off the mortgage? Include a cash flow diagram in your written work. Hints: The present worth of the sequence of payments must equal the amount borrowed. You can divide the payments into three parts: a uniform series paid monthly, a uniform series paid quarterly, and a single final payment that may be smaller than the typical payment
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