A $100,000 mortgage at 6.8% compounded semi-annually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting in the second year and a $10,000 lump payment is made along with the 24 th payment?

Question

A $100,000 mortgage at 6.8% compounded semi-annually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting in the second year and a $10,000 lump payment is made along with the 24 th  payment?

Lauren Carden · Accepted Answer

Final Answer : 7 years and 11 months

A $100,000 mortgage at 6.8% compounded semi-annually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting in the second year and a $10,000 lump payment is made along with the 24^th payment?

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Learning Objectives

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A $100,000 mortgage at 6.8% compounded semi-annually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting in the second year and a $10,000 lump payment is made along with the 24th payment?

Definitions

Learning Objectives

Learning Objectives

Related questions

A $100,000 mortgage at 6.8% compounded semi-annually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting in the second year and a $10,000 lump payment is made along with the 24^th payment?