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a) factors other than (F/P..) and (P/F..) are correct to four decimal places b) interest rates are correct to four positive decimal places (four significant digits).

a) factors other than (F/P..) and (P/F..) are correct to four decimal places b) interest rates are correct to four positive decimal places (four significant digits).

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 5RE: Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit...
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a) factors other than (F/P..) and (P/F..) are correct to four decimal places b) interest rates are correct to four positive decimal places (four significant digits). c) use the equations, do not round, for the (F/P..) and (P/F..) factors O 761,845 O 762,045 O 762,245 O 762,445
Transcribed Image Text:a) factors other than (F/P..) and (P/F..) are correct to four decimal places b) interest rates are correct to four positive decimal places (four significant digits). c) use the equations, do not round, for the (F/P..) and (P/F..) factors O 761,845 O 762,045 O 762,245 O 762,445
You purchase a house for $1m. You put a 20% down payment and take out a mortgage on the remainder. Your mortgage agreement specifies a rate of 8% APR compounded weekly. You will make semi-monthly (twice-a-month) payments for 25 years. At the end of one year of payments (on the first anniversary of your mortgage) you make a one-time additional lump-sum payment of $20,000 toward the mortgage. One year after that (so on the second anniversary of your mortgage), you decide to pay off the remaining mortgage balance outstanding. The penalty charge for paying off the mortgage in advance is 3 half-months of simple semi-monthly interest on the balance due. The balance owing, including the penalty, is within $100 of which of the following? Note: I am following our course conventions:
Transcribed Image Text:You purchase a house for $1m. You put a 20% down payment and take out a mortgage on the remainder. Your mortgage agreement specifies a rate of 8% APR compounded weekly. You will make semi-monthly (twice-a-month) payments for 25 years. At the end of one year of payments (on the first anniversary of your mortgage) you make a one-time additional lump-sum payment of $20,000 toward the mortgage. One year after that (so on the second anniversary of your mortgage), you decide to pay off the remaining mortgage balance outstanding. The penalty charge for paying off the mortgage in advance is 3 half-months of simple semi-monthly interest on the balance due. The balance owing, including the penalty, is within $100 of which of the following? Note: I am following our course conventions:
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