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You want to take out a $340,000 mortgage. The mortgage rate is 5.99% (APR, semi-annually compounded)...

You want to take out a $340,000 mortgage. The mortgage rate is 5.99% (APR, semi-annually compounded) with monthly payments and a 10-year amortization period. What would be your monthly mortgage payments?

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Answer #1

APR(semi-annually) = 5.99%

APR(monthly) = 12[(1 + 0.0599/2)1/6 - 1] = 5.917%

Calculating Monthly Payment,

Using TVM Calculation,

PMT = [PV = 340,000, FV = 0, N = 120, I = 0.05917/12]

PMT = $3,760.46

Monthly Payment = $3,760.46

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