A $280,000 mortgage at 5.75% compounded semi-annually was settled with monthly payments of $1955.03.

a. What is the amortization period?

b. Instead of monthly payments, if accelerated bi-weekly payments of $977.50 were made, what will be the amortization period?

c. How much interest will be saved if accelerated bi-weekly payments are made, as in (b), instead of monthly payments?

AppendixLO1