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Bob and Angelique Mackenzie bought a property valued at $ 8 4 , 0 0 0 for $ 1 5 , 0 0 0 down
Bob and Angelique Mackenzie bought a property valued at $ for $ down with the balance amortized over
years. The terms of the mortgage require equal payments at the end of each month. Interest on the mortgage is
compounded semiannually and the mortgage is renewable after five years.
a What is the size of the monthly payment?
b Prepare an amortization schedule for the first fiveyear term. Make sure your payments are rounded to the nearest
cent.
c What is the cost of financing the debt during the first fiveyear term?
d If the mortgage is renewed for a further five years at compounded semiannually, what will be the size of each
monthly payment?
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