The interest rate for the first three years of an $89,000 mortgage is 4.4% compounded semiannually. Monthly payments are
Posted: Tue Jul 12, 2022 12:47 pm
The interest rate for the first three years of an $89,000mortgage is 4.4% compounded semiannually. Monthly payments arebased on a 20-year amortization. If a $4,800 prepayment is made atthe end of the sixteenth month.a. How much will the amortizationperiod be shortened?The amortization period will be shortenedby months.b. What will be the principal balance at theend of the three-year term? (Round your answer to thenearest cent.)Principal balance $