Question
A $300,000 mortgage is amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually. a. (3 Marks) Find the size
A $300,000 mortgage is amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually. a. (3 Marks) Find the size of the regular monthly payment (round up to the nearest cent) and the size of the final smaller payment. b. (1 Mark) What is the outstanding balance after 2 years? c. (1 Mark) How much interest is paid over the life of the mortgage? d. (3 Marks) If the mortgage was amortized over 20 years with monthly payments instead of 25 years with monthly payments. How much interest is paid over the life of the mortgage?
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