You decide to take a 30year mortgage of $200,000 offered by the Bank of Montreal. Instead of making the monthly payment of $1,148.64 every month, you can make half the payment every two weeks (so that you will make 52/2 equals 26 payments a year) How long will it take to pay off the mortgage if the EAR on the loan is 5.75%?

Answer rating: 100% (QA)

Solution Periodic interest rate 1Effective annual interest rate 1m 1 ... View the full answer