Armita wants to buy a house costing $700,000.00. She will make a down payment of $175,000.00 and take out a mortgage for the rest. The term of the mortgage is 4 years, and the amortization period is 20 years. Armita will make bi-weekly payments and the mortgage rate is r⁽⁵²⁾ = 2.250%.

a) How much are the bi-weekly payments?

b) If Armita wants to reduce the bi-weekly payments to $1,000.00, how much would the down payment have to be?

c) If another bank offers Armita an equivalent mortgage (original down payment, same term, amortization period, payment periods) but with $1,343.28 bi-weekly payments, what nominal interest rate r⁽⁵²⁾ are they charging? (Remember, write 3.456 not 0.03456!)