5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is...

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is 3% per year,
Compounded annually
Compounded monthly
Compounded daily
What are effective annual rates for 1,2, and 3 above?

Expert Solution

Compounded annually is effective annually so the interest rate is 3%

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Compounded monthly

the effective annual rate of interest =r=3.042% (calculated in the following solution itself)

Compounded daily

Rahul Sunny answered 2 years ago

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