The interest rate for the first five years of a $90,000 mortgage loan is 7.25% compounded semiannually.

Question:

The interest rate for the first five years of a $90,000 mortgage loan is 7.25% compounded semiannually. Monthly payments are calculated using a 20-year amortization.
a. What will be the principal balance at the end of the five-year term?
b. What will be the new payments if the loan is renewed at 6.5% compounded semiannually (and the original amortization period is continued)?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: