You have just purchased a home and taken out a $300,000 mortgage. The mortgage has a 30-year term with semi-annual payments and an interest rate of 6% p.a. compounded semi-annually. The amount of interest you will pay during the first year is closest to? Group of answer choices $17900 $21583 $17945 $21680 $17918
Added by Victor Manuel L.
Step 1
- The annual interest rate is 6%, so the semi-annual interest rate is: \[ \text{Semi-annual interest rate} = \frac{6\%}{2} = 3\% = 0.03 \] Show more…
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