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A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.4% compounded semi-annually for a five-year term. (a) Compute

A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.4% 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
8%
compounded
semi-annually,
what is the size of the
monthly
payment for the renewal term?

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