Mortgages are the largest debt that most Canadians will ever take on. As such, I firmly believe
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Question:
Mortgages are the largest debt that most Canadians will ever take on. As such, I firmly believe that every Canadian should understand how banks compute the payment on a conventional residential mortgage. Assume that we want to borrow $500,000 at a rate of interest of 4.5%, compounded semi-annually and amortized over 25 years. What is the effective annual interest rate on this loan?
a).4.6321%
b). 47821%
c). 4.5506%
d). 4,6630%
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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