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Oppenheimer Bank is offering a 30​-year mortgage with an APR of 5.01% based on monthly compounding....

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

Solutions

Expert Solution

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

jeff jeffy answered 1 year ago
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