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Adrian purchased a house for $500,000. She made a downpayment of 15% of the value of the house and received a mortgage for the rest
Adrian purchased a house for $500,000. She made a downpayment of 15% of the value of the house and received a mortgage for the rest of the amount at 5.50% compounded semi-annually for 20 years. The interest rate was fixed for a 5 -year term. a. Calculate the size of the monthly payments. Round to the nearest cent b. Calculate the principal balance at the end of the 5-year term. Round to the nearest cent c. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5 -year term at 5.25% compounded semi-annually
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