The MacLellans originally chose to make payments of $2600 per month on a $275,000 mortgage written at
Question:
The MacLellans originally chose to make payments of $2600 per month on a $275,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised their right under the mortgage contract to increase the payments by 10%.
a. If the interest rate does not change, when will they extinguish the mortgage debt?
b. What will be the principal balance at the end of the five-year term?
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Related Book For 
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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