Question

Oppenheimer Bank is offering a 30​-year mortgage with an APR of 4.84% based on monthly compounding....

Oppenheimer Bank is offering a 30​-year mortgage with an APR of 4.84% based on monthly compounding. With this mortgage your monthly payments would be $2,040 per month. In​ addition, Oppenheimer Bank offers you the following​ deal: Instead of making the monthly payment of $2,040 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.

The number of payments will be —————​,which is approximately ————years.  ​(Round to two decimal places and enter the years rounded to the nearest whole​ number.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Oppenheimer Bank is offering 30​-year mortgage with an APR 5% based on monthly compounding. With this...
Oppenheimer Bank is offering 30​-year mortgage with an APR 5% based on monthly compounding. With this mortgage your monthly payments would be $1,970 per month. In​ addition, Oppenheimer Bank offers you the following​ deal: Instead of making the monthly payment of $1,970 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...
Oppenheimer Bank is offering a 30 year mortgage with an APR of 4.78% based on monthly...
Oppenheimer Bank is offering a 30 year mortgage with an APR of 4.78% based on monthly compounding. With this mortgage your monthly payment would be $1,986 every month, you can make half the payment every two weeks (so that you will make 52/2 =26 payment per year). With this plan, how long will it take to pay off the mortgage if the EAR of the loan is unchanged? The number of payments will be _____, which is approximately ____ years.
a bank is offering a 30-year mortgage with an APR of 6.20% based on monthly compounding....
a bank is offering a 30-year mortgage with an APR of 6.20% based on monthly compounding. if you plan to borrow 170,000$ , what will be your monthly payment ?
Oppenheimer Bank is offering a 30-year mortgage with an APY (or effective annual rate) of 6.625%....
Oppenheimer Bank is offering a 30-year mortgage with an APY (or effective annual rate) of 6.625%. If you plan to borrow $180,000, what will your monthly payment be?
Oppenheimer Bank is offering a 30-year mortgage with an APY (or effective annual rate) of 6.625%....
Oppenheimer Bank is offering a 30-year mortgage with an APY (or effective annual rate) of 6.625%. If you plan to borrow $180,000, what will your monthly payment be?
PLEASE SHOW HOW TO SOLVE USING FINANCIAL CALCULATOR. 20) Suppose Oppenheimer Bank is offering a 30-year...
PLEASE SHOW HOW TO SOLVE USING FINANCIAL CALCULATOR. 20) Suppose Oppenheimer Bank is offering a 30-year mortgage with an EAR of 6.80%. If you plan to borrow $150,000, what will your monthly payment be? 24) What is the present value (PV) of an investment today that pays $10,000 every year for four years, starting one year from today? Assume the interest rate is 7% APR, compounded quarterly. 25) You just deposited $2,500 in a bank account that pays a 12%...
Bank 1 is offering loans at 2% APR with monthly compounding. Bank 2 has a CD...
Bank 1 is offering loans at 2% APR with monthly compounding. Bank 2 has a CD paying an interest rate of 3% APR with semi-annual compounding. Can you make a riskless profit by borrowing and lending? Suppose you borrowed $10,000 from Bank 1 and invested it in Bank 2. How much money will you have after one year?
Your work for a bank that requires 30-year mortgages to have an EAR of 6.676%. The...
Your work for a bank that requires 30-year mortgages to have an EAR of 6.676%. The mortgages have monthly payments (and monthly compounding). (a) What is the APR of these mortgages? (b) A customer closes a deal to purchase a $800,000 home with 20% down. Her first payment is one month from now. Ignoring taxes and insurance, what are her monthly mortgage payments be?
A mortgage broker is offering a 20-year $275,000 mortgage with a teaser rate. In the first...
A mortgage broker is offering a 20-year $275,000 mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.1 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.1 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) What are the monthly payments after the second...
A mortgage broker is offering a 20-year $179,900 mortgage with a teaser rate. In the first...
A mortgage broker is offering a 20-year $179,900 mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 3.6 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 6.6 percent APR. What are the mothly payments in the first two years? What are the monthly payments after the second year? Please do not round intermediate calculations and round your final answer to 2...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT