(SOLVED) Amanda's mortgage is repaid over 20 years by payments of $577.53 made at the end of each month.
Discipline: Accounting
Type of Paper: Creative writing
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Pages: 1
Words: 110
Question
Amanda's mortgage is repaid over 20 years by payments of $577.53 made at the end of each month.
If interest 2% semi annually, what is the mortgage principal?
Expert Solution Preview
Interest rate = 2% compounded semi-annually
Interest rate = 0.02
S = Number of semi-annual periods per year = 2
Q = Number of months in a semi-annual period = 6
The effective monthly rate is given by:
