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A $86,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 4.2% compounded semi-annually for a five-year term. (a) Compute

A $86,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 4.2% compounded semi-annually for a five-year term.

(a) Compute the size of the monthly payment.

(b) Determine the balance at the end of the five-year term.

(c) If the mortgage is renewed for a five-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term?

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