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Oppenheimer Bank is offering a 30​-year mortgage with an APR of 5.13% based on monthly compounding....

Oppenheimer Bank is offering a

30​-year

mortgage with an APR of

5.13%

based on monthly compounding. With this mortgage your monthly payments would be

$2,032

per month. In​ addition, Oppenheimer Bank offers you the following​ deal: Instead of making the monthly payment of

$2,032

every​ month, you can make half the payment every two weeks​ (so that you will make

52/2=26

payments per​ year). With this​ plan, how long will it take to pay off the mortgage if the EAR of the loan is​ unchanged? Note: Make sure to round all intermediate calculations to at least 8 decimal places.

Solutions

Expert Solution

Therefore, Number of Payments = 652.95 & Number of Years = 25 years

jeff jeffy answered 2 years ago
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