Kiana and Peter would like to purchase a $675,000 four-bedroom home with an attached garage. The bank has qualified them for a mortgage at a fixed rate of 3.35% compounded semi-annually over a 25-year amortization period.

a. What is the minimum down payment they will be required to provide in Canada?

b. If Kiana and Peter make the minimum required down payment, how large will their monthly payments be given the fixed interest rate offered by the bank?

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