A $100,000 mortgage at 7.1% compounded semi-annually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along with the 12 th payment and payments are increased by 10% starting in the third year?

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A $100,000 mortgage at 7.1% compounded semi-annually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along with the 12 th  payment and payments are increased by 10% starting in the third year?

shubham bharadwaj · Accepted Answer

Final Answer : 5 years and 8 months

A $100,000 mortgage at 7.1% compounded semi-annually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along with the 12^th payment and payments are increased by 10% starting in the third year?

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A $100,000 mortgage at 7.1% compounded semi-annually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along with the 12th payment and payments are increased by 10% starting in the third year?

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Learning Objectives

Learning Objectives

Related questions

A $100,000 mortgage at 7.1% compounded semi-annually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along with the 12^th payment and payments are increased by 10% starting in the third year?