A $198 000 mortgage amortized by monthly payments over 20 years is renewable after 5 years. Interest is 4.65% compounded semi-annually.
(a) What is the size of the monthly payments?
(b) How much interest is paid during the first year?
(c) How much of the principal is repaid during the first 5-year term?
(d) If the mortgage is renewed for a further 5-year term at 5.24% compounded semi-annually, what will be the size of the monthly payments?
(e) Construct a partial amortization schedule showing details of the first three payments for each of the two 5-year terms.