Asked by Khaled Bushehri on May 10, 2024
Verified
LeVero's end-of-month payments of $1167.89 will pay off his mortgage loan in 4 years and 7 months. The interest rate on his mortgage is 6.6% compounded semi-annually. What is the current balance on the loan?
Compounded Semi-annually
Interest on a loan or investment calculated twice a year, added to the principal sum, and earning interest thereafter.
Mortgage Loan
A loan secured by real property through the use of a mortgage note, typically used to purchase property.
- Attain knowledge and skills in computing the present and future values of cash flows and annuities.
- Examine the conditions of a loan contract to comprehend the consequences of various interest rates and repayment plans.
Verified Answer
NV
Learning Objectives
- Attain knowledge and skills in computing the present and future values of cash flows and annuities.
- Examine the conditions of a loan contract to comprehend the consequences of various interest rates and repayment plans.