You want to pay off your mortgage on something called an accelerated bi-weekly payment plan (your...

70.2K

Verified Solution

Question

Finance

You want to pay off your mortgage on something called anaccelerated bi-weekly payment plan (your parents told you to dothis). You have a mortgage of $580,000 amortized over 33 years at arate of 4.3 percent APR compounded semi-annually. (Assume52 weeks a year.)

a. What would the regular bi-weekly payment be?(Do not round your intermediate calculations. Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.)

Regular bi-weekly payment          $

b. What would the accelerated bi-weekly payment be?(Do not round your intermediate calculations. Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.)

Accelerated bi-weekly payment          $

c. How much quicker would you pay off the mortgagepayment? (Do not round your intermediate calculations.Round your answer to 3 decimal places.)

Pay off period            years

d. How much interest would you save by doing theaccelerated bi-weekly payment? (Do not round yourintermediate calculations. Round your answer to 2 decimal places.Omit the "$" sign in your response.)

Savings in interest payment          $

Answer & Explanation Solved by verified expert

3.8 Ratings (439 Votes)

Mortgage amount 58000000 Interest rate 860 Amortization period 33 No of payments in a year 12 Total number of payments 396 Payments per period 441794 Sum of Payments 174950236 Interest See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You want to pay off your mortgage on something called anaccelerated bi-weekly payment plan (your parents told you to dothis). You have a mortgage of $580,000 amortized over 33 years at arate of 4.3 percent APR compounded semi-annually. (Assume52 weeks a year.)a. What would the regular bi-weekly payment be?(Do not round your intermediate calculations. Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.)Regular bi-weekly payment $ b. What would the accelerated bi-weekly payment be?(Do not round your intermediate calculations. Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.)Accelerated bi-weekly payment $ c. How much quicker would you pay off the mortgagepayment? (Do not round your intermediate calculations.Round your answer to 3 decimal places.)Pay off period yearsd. How much interest would you save by doing theaccelerated bi-weekly payment? (Do not round yourintermediate calculations. Round your answer to 2 decimal places.Omit the "$" sign in your response.)Savings in interest payment $