A $300,000 property mortgage is to be settled with monthly payments over a 15-year period. The rate for the mortgage is fixed at 3.65% compounded semi-annually.

a. Determine the size of the monthly payments for the first term rounded to the next $100.

b. In order to repay the mortgage faster the owners made the rounded payments from (a). What was the balance on the mortgage after 5 years?

c. After 5 years, the owners were able to make a lump sum payment of $7500 and continue with the rounded payments from (a). How much faster were they able to repay the mortgage in full?

AppendixLO1