A borrower is making a choice between a mortgage with monthly payments or biweekly
payments. The loan will be $ at percent interest for years.
Required:
a hat would be the maturity period if payments are biweekly? How much will the borrower pay
in total under each payment option? Which choice would be less costly to the borrower? Hint:
Assume total biweekly payments per year for the maturity period.
b Assume that the biweekly loan was available for What would be the maturity period if
payments are biweekly? How much will the borrower pay in total under each payment option?
Which choice would be less costly for the borrower?
Complete this question by entering your answers in the tabs below.
hat would be the maturity period if payments are biweekly? How much will the borrower pay in total
option? Which choice would be less costly to the borrower? Hint: Assume total biweekly payments
maturity period.
Note: Do not round intermediate calculations. Round your final answers to decimal places.
