The interest rate on a $100,000 mortgage loan is 7% compounded semi-annually.
a) What are the monthly payments for a 25-year amortization?
b) Suppose that the borrower instead makes weekly payments equal to one-fourth of the monthly payment calculated in part a. When will the loan be paid off if the interest rate does not change? Assume there are exactly 52 weeks in a year.

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The Answer of The interest rate on a $100,000 mortgage loan is 7% compounded semi-annually.
a) What are the monthly payments for a 25-year amortization?
b) Suppose that the borrower instead makes weekly payments equal to one-fourth of the monthly payment calculated in part a. When will the loan be paid off if the interest rate does not change? Assume there are exactly 52 weeks in a year.

The Interest Rate on a $100,000 Mortgage Loan Is 7