A. The CIB bank has determined that based on a TDS ratio of 40% and other factors, the maximum monthly mortgage payment of Tika Aaron qualifies to make $2,500. The five-year fixed rate of interest is 4.5% compounded semi-annually and the mortgage is to be amortized over 25 years. What is the maximum value of the mortgage that Tika may obtain from CIB?

B. Mr. Wilson's house was purchased for $280,000 five years ago and is worth $300,000 now,and his mortgage was $260,000 and amortized over 25 years, at 4% interest, compounded semi-annually, what is his equity in his house now?(To the nearest $1000, you must assume monthly mortgage payment frequency; hint, and use the amortization schedule)