When the Littles purchased a home, they borrowed $170 000 as a mortgage to be amortized by making monthly payments for 25 years. Interest is 4.89% com- pounded semi-annually for a 3-year term.
(a) Compute the size of the monthly payment.
(b) Determine the balance at the end of the 3-year term.
(c) If the mortgage is renewed for a 4-year term at 5.24% compounded semiannually, what is the size of the monthly payment for the renewal term?