A $60,000 mortgage is obtained at a rate of j₂ = 13%.The mortgage is to be paid off with weekly payments for 20 years (note: 52 weeks in a year).What is the weekly payment?

Question

Quizplus · Accepted Answer

First, we need to calculate the total number of weeks in 20 years:
20 years x 52 weeks per year = 1040 weeks
Next, we can use the formula for calculating the weekly payment for a mortgage:

Weekly Payment = (Mortgage Amount x Weekly Interest Rate) / (1 - (1 + Weekly Interest Rate)^-Total Number of Weeks)

Where 
Mortgage Amount = $60,000
Weekly Interest Rate = 13% / 52 = 0.0025
Total Number of Weeks = 1040

Plugging in the values, we get:

Weekly Payment = (60,000 x 0.0025) / (1 - (1 + 0.0025)^-1040)
Weekly Payment = $158.25

Therefore, the best choice is C.

A $60,000 Mortgage Is Obtained at a Rate of J2

A $60,000 Mortgage Is Obtained at a Rate of J₂