Final answer:
Raj's regular bi-weekly payment, based on his monthly payment of $2,246.21, is approximately $1,036.71. This is determined by dividing his monthly payment by 2.165, the number of bi-weekly periods in a month.
Step-by-step explanation:
The question is asking to calculate Raj's regular bi-weekly payment based on his monthly Principal and Interest (P&I) payment of $2,246.21. A month is roughly four weeks long but for financial calculations, a month is considered as 4.33 weeks because a year has approximately 52 weeks and when divided by 12 months, it equals 4.33. To calculate Raj's bi-weekly payment, we divide the monthly payment by 2 since a bi-weekly schedule involves two payments per month. Therefore, Raj's bi-weekly payment is calculated as follows:
Raj's monthly payment: $2,246.21
Weekly payments in a month: 4.33
Bi-weekly payments in a month: 4.33 / 2 = 2.165
Raj's bi-weekly payment: $2,246.21 / 2.165 ≈ $1,036.71
The correct answer is (c) $1,036.71.