An investor buys a property for $1,240,000 with a 20-year mortgage and with monthly payments at a quoted APR of 4% with semi-annual compounding. After 24 months the investor sells the property for $1, 712, 000.

(a) Find the eective monthly interest rate and the monthly mortgage payment.

(b) Find how much of the mortgage has been reimbursed after 24 months and how much remains to be paid.

(c) What is the gain made by selling the house? That is, after the mortgage has been reimbursed.