Question

A $100,000 mortgage is amortized over 20 years with monthly payments at an interest rate of 8% compounded semi-annually. Suppose you paid an extra $1000 at the end of each year, how many years, would it now take to pay off the mortgage and how much interest would be paid over the life of the mortgage?

Name: a 100000 mortgage is amortized over 20 years with monthly payments at an interest rate of 8 compounded semi annually suppose you paid an extra 1000 at the end of each year how many years wou 00898
Uploaded: 2023-03-16T01:11:30-08:00
Duration: 4 min 17 s
Channel: Supreeta N
Description: a 100000 mortgage is amortized over 20 years with monthly payments at an interest rate of 8 compounded semi annually suppose you paid an extra 1000 at the end of each year how many years wou 00898

          A $100,000 mortgage is amortized over 20 years with monthly
payments at an interest rate of 8% compounded semi-annually.
Suppose you paid an extra $1000 at the end of each year, how many
years, would it now take to pay off the mortgage and how much
interest would be paid over the life of the mortgage?

Added by Gregory P.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Supreeta N

03/16/2023

Step 1

To calculate the monthly mortgage payment, we need to find the effective monthly interest rate and the number of monthly payments. The nominal annual interest rate is 8%, compounded semi-annually. To find the effective annual interest rate, we use the Show more…

Show all steps

Thanks for your feedback!

A $100,000 mortgage is amortized over 20 years with monthly payments at an interest rate of 8% compounded semi-annually. Suppose you paid an extra $1000 at the end of each year, how many years, would it now take to pay off the mortgage and how much interest would be paid over the life of the mortgage?