You have are a considering a mortgage from First Bank and Trust. It carries an...
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You have are a considering a mortgage from First Bank and Trust. It carries an interest rate 5.19% (APR based on monthly compounding), a 30-year term, and a payment of $2,026 per month. Your financial advisor is suggesting you consider a deal where you make payments bi-weekly instead of monthly. This is, instead of payment $2,026 every month, you can make half that payment every two weeks (i.e., 52/2=26 payments per year). Under this alternative, and keeping the EAR of the mortgage unchanged, how long will it take to pay off the mortgage? Note: If you round intermediate calculations, do so carefully: you should have at least 8 decimal places for all intermediate calculations.
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