For the mortgage in Question 9, develop a mortgage statement for the 6-month term if semi-monthly payments equal to one-half of the monthly payment are made on the 1st day and the 16th day of each month. The first payment is due June 16. Compare the balance to the balances in Question 9 and Question 10. Explain why there are differences.
In Question 9
A $40 000 mortgage taken out on June 1 is to be repaid by monthly payments rounded up to the nearest $10. The payments are due on the first day of each month starting July 1. The amortization period is 12 years and interest is 5.5% com- pounded semi-annually for a 6-month term. Construct an amortization schedule for the 6-month term.