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A $85,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 3.3% compounded semi-annually for a seven-year term. (a) Compute

A $85,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 3.3% compounded semi-annually for a seven-year term.

(a)

Compute the size of the monthly payment.

(b)

Determine the balance at the end of the

seven-year

term.

(c)

If the mortgage is renewed for a

seven-year

term at

compounded

semi-annually,

what is the size of the

monthly

payment for the renewal term?

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