A variable-rate mortgage of $154,000 is amortized over 20 years by equal monthly payments. After 12 months the original interest rate of 6% compounded semi-annually was raised to 7.9% compounded semi-annually. Two years after the mortgage was taken out, it was renewed at the request of the mortgagor at a fixed rate of 7.3% compounded semi-annually for a four-year term.(a) Calculate the mortgage balance after 12 months.

(b) Compute the size of the new monthly payment at the7.9% rate of interest.

(c) Determine the mortgage balance at the end of the four-year term.

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