Part V: Learning objective from chapter (68) On March 1, you borrow $239,000 to buy...
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Part V: Learning objective from chapter (68) On March 1, you borrow $239,000 to buy a house at a quoted rate of 7.88% compounded semi-annually. The loan is to be repaid in equal monthly payments over 20 years. The first payment is due on April 1. a) What is the Effective Annual rate of the Annualized Percentage rate of 7.88% compounded semi-annually? b) What will be the monthly rate that will be used in calculating the mortgage interest payments. c) What is the total payment you will pay per month? d) In the below table, show the loan amortization for the first 5 years More Bening of your balance interest payment Loan Tepuy 2 3 4 5 e) How much interest was paid in the first 5 payments? f) How much do you owe after paying the first five payments
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