2. Mr. Jones takes out a mortgage of $120 000 to purchase a home. The mortgage is amortized over 25 years, and the interest rate is 6.5% /a, compounded semi-annually.

a) Determine the monthly payments. c) What monthly payments are required to pay off the mortgage in 20 years? N= I%= PV= PMT= FV= P/Y= C/Y=

b) How much interest is paid over the life of the mortgage? d) How much in interest charges is saved by doing this?

e) Suppose Mr. Jones makes bi-weekly payments of $450.00. How long will it take to pay off the mortgage? N= I%= PV= PMT= FV= P/Y= C/Y= N= I%= PV= PMT= FV= P/Y= C/Y=