Business Math

Loan Amortization

Please answer correctly

The interest rate for the first five years of an $97,000 mortgage loan is 9.1% compounded semiannually. Monthly payments are calculated using a 25-year amortization. a. What will be the principal balance at the end of the five-year term? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Principal balance $ b. What will be the monthly payments if the loan is renewed at 6.5% compounded semiannually (and the original amortization period is continued)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment per month