second mortgage requires payment of $370 at the end of each month for fifteen years.interest is 8% compounded semi-annually, what is the value of p?a. p=0.066.b. p=0.66.c. p= 0.0066.d. p=$38904.80.

In mortgages if the interest rates changes than there is option to refinance the existing mortgage…

Answered: requires payment of $370 at the…

requires payment of $370 at the interest is 8% compounded semi-annually, what is the value of p? a. p=0.066. b. p=0.66. c. p=0.0066. d. p=$38904.80.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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second mortgage requires payment of $370 at the end of each month for fifteen years.
interest is 8% compounded semi-annually, what is the value of p?
a. p=0.066.
b. p=0.66.
c. p= 0.0066.
d. p=$38904.80.

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