Monthly Payments on a $150,000 Mortgage Are Based on an Interest

question 44

Essay

Monthly payments on a $150,000 mortgage are based on an interest rate of 4.9% compounded semi-annually and a 30-year amortization. If a $5,000 prepayment is made along with the 32^nd payment,
a) How much will the amortization period be shortened?
b) What will be the principal balance after four years?

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