A mortgage for a condominium had a principal balance of $42,800 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 3.92% compounded semi-annually and payments were made monthly.

a. Calculate the size of the payments, rounded up to the next whole number.

$583

$1,044

$577

$589

b. If the monthly payments were set at $683, by how much would the time period of the mortgage shorten?

1 years and 1 months

2 years and 2 months

6 years and 6 months

7 years and 7 months

c. If the monthly payments were set at $683, calculate the size of the final payment.

$790.93

-$576.58

$108.28

$67,083.76