a)You just took out a $110 000 mortgage for piece of lake-front land in northern Alberta. You negotiated with your bank for a 9.5% nominal interest rate (compounded monthly) and a 20-year amortization period (the duration over which the loan is calculated to be repaid). What are your monthly payments?

b)A short time later, youre interested in refinancing your mortgage. How much do you still owe after three years?