The interest rate for the first three years of an $87,000 mortgage is 7.4% compounded semiannually. Monthly

Question:

The interest rate for the first three years of an $87,000 mortgage is 7.4% compounded semiannually. Monthly payments are based on a 20-year amortization. If a $4000 prepayment is made at the end of the sixteenth month:
a. How much will the amortization period be shortened?
b. What will be the principal balance at the end of the three-year term?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

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