After graduating with your degree, you have decided that it is time to buy your first home. The condo you want costs $400,000 and you have $50,000 for a down payment. The bank will lend you $350,000 at a rate of 6%, compounded semi-annually, and amortized over 25 years. Please use this question for the next 4 questions.

How much is your monthly payment?

A) $2,136.86 B) $2,274.35 C)$2,239.32 D)$1,878.25

What is the balance outstanding on the mortgage after the 60th payment has been made?

A) $326,367 B) $314,429 C) $327,821 D) $330,511

What is the total amount of interest paid on the loan over its 25-year life?

A) $375,889 B) $419,270 C) $321,797 D) $405,898

If you were to decide that bi-weekly payments (bi-weekly means you pay once every two weeks or 26 payments per year) better fitted your cash flow than monthly payments, based on the same numbers used above (principal of $350,000, 6% interest rate, compounded twice a year and amortized over 25 years), what is your bi-weekly mortgage payment?

A) $977.40 B) $1,040.94 C) $1,032.16 D)$1,611.29