In: Finance
Oppenheimer Bank is offering a
30-year
mortgage with an APR of
5.01%
based on monthly compounding. With this mortgage your monthly payments would be
$2,048
per month. In addition, Oppenheimer Bank offers you the following deal: Instead of making the monthly payment of
$2,048
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
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
APR IS GIVEN 5.01%, SO FIRST IMAGE IS AS PER APR = 5.01%
NOW IN COMMENT BOX , YOU ARE WRITING, IT IS 4.14%, SO CHECK SECOND IMAGE