Math (Bi Weekly)

Question 1

A mortgage loan has a face value of $315,000, an interest rate of j2 = 4%, an amortization period of 20 years, a term of 5 years, and an option to make accelerated biweekly payments. What is the amount of the accelerated bi-weekly payment rounded up to the next highest dollar?

(1) $952
(2) $1,579
(3) $889
(4) $1,698

Answer 1

1

j2 = 4
n=20 (240)

315,000 ? 0
=1,903.37

divided by 2= 952 bi weekly payment

Question 2

A mortgage loan has a face value of $350,000, an interest rate of j2 = 5.5%, an amortization period of 20 years, a term of 3 years, and an option to make accelerated biweekly payments. What is the amount of the accelerated bi-weekly payment rounded up to the next highest dollar?

(1) $1,325
(2) $2,533
(3) $1,198
(4) $2,649

Answer 2

3

j2=5.5
n=20

350,000 ? 0
=-2395.37

DIVIDED BY 2!! = 1,197.68

SO BASICALLY, WE DIVIDE THE PAYMENT BY WHATEVER THE ACCELERATION OPTION IS TO GET THE ANSWER!!!!