A mortgage for a condominium had a principal balance of $44,910 that had to be amortized over the remaining period of four years. The interest rate was fixed at 4.5% compounded semi-annually and payments were made monthly.

a. Calculate the size of the monthly payments if they are rounded up to the next $50.

b. If the monthly payments were set at $1200, by how much would the time period of the mortgage shorten?

c. If the monthly payments were set at $1200, what is the size of the final payment?

AppendixLO1