A $50 000.00 mortgage is amortized by monthly payments over twenty years and is renewable

after five years.

a) If the interest rate is 12.5% compounded semi-annually, calculate the outstanding balance at

the end of the five-year term.

b) If the mortgage is renewed for a further three-year term at 7% compounded semi-annually,

calculate the size of the new monthly payment.

c) Calculate the payout figure at the end of the three-year term.