A $120,000 mortgage is amortized over 25 years. Interest is 7.5% compounded semi-annually for a 5-year term with monthly payments. At the end of the fifth year, the mortgage is renewed for a four-year term at a rate of 7.0% compounded semi-annually. Determine the monthly payments throughout the renewal four year term.

Question

Quizplus · Accepted Answer

The Answer of A $120,000 mortgage is amortized over 25 years. Interest is 7.5% compounded semi-annually for a 5-year term with monthly payments. At the end of the fifth year, the mortgage is renewed for a four-year term at a rate of 7.0% compounded semi-annually. Determine the monthly payments throughout the renewal four year term.

A $120,000 Mortgage Is Amortized Over 25 Years