Alternative 2 results in the lowest overall cost and lowest interest cost.A 20 year mortgage biweekly costs $216.04/month more than a 25-year but saves $64,062 over 20 years.The cost per month of bimonthly payments is also slightly lower than monthly payments.This is a good exercise to demonstrate the advantage of shorter term mortgages.
-How long does it take $1,000 to double in value if you have a
A)3% return
B)6% return
C)10% return
Assume compounding monthly.

Question

Quizplus · Accepted Answer

The Answer of Alternative 2 results in the lowest overall cost and lowest interest cost.A 20 year mortgage biweekly costs $216.04/month more than a 25-year but saves $64,062 over 20 years.The cost per month of bimonthly payments is also slightly lower than monthly payments.This is a good exercise to demonstrate the advantage of shorter term mortgages.
-How long does it take $1,000 to double in value if you have a
A)3% return
B)6% return
C)10% return
Assume compounding monthly.

Alternative 2 Results in the Lowest Overall Cost and Lowest