Question

A monthly payment of X is calculated on a 30 year, 100,000 mortgage at a nominal rate of interest of 9%, convertible monthly. If a payment of one-half of X is made every two weeks, how many years will it take to pay off the mortgage, assuming a year consists of exactly 52 weeks

Answer 1

the number of years taken to pay off the mortgage is 22 years

Step-by-step explanation:

The computation of the number of years taken to pay off the mortgage is as follows;

= NPER (((1 + 9% ÷ 12)^(12 ÷ 26) - 1),0.5 × PMT(9% ÷ 12,12 × 30 ,100,000),100,000)

= 567.398762 biweeks or 21.82302931 years

= 22 years

hence, the number of years taken to pay off the mortgage is 22 years