A $100,000 mortgage at 6.8% compounded semi-annually with a 20-year amortization requires monthly payments. The mortgage allows the mortgagor to "double up" on a payment once each year. How much will the amortization period be shortened if the borrower doubles the eighth payment?

Question

Quizplus · Accepted Answer

The Answer of A $100,000 mortgage at 6.8% compounded semi-annually with a 20-year amortization requires monthly payments. The mortgage allows the mortgagor to "double up" on a payment once each year. How much will the amortization period be shortened if the borrower doubles the eighth payment?

A $100,000 Mortgage at 6