Five years ago the Stewarts purchased a $495,000 home on the North Shore. They made a down payment of $125,000 and mortgaged the balance with the Western Credit Union. The interest rate was 6.5% compounded semi-annually, for a five-year term, amortized over 25 years. (a) Calculate the size of the monthly payment required. The credit union rounds the payment up to the next dollar) How much interest did the Stewarts pay during the third year of the mortgage? (c) The Stewarts, after having made 5 years of payments, made a lump-sum payment to reduce the outstanding balance to $310,000. What was the lump-sum payment? Answer: (d) After making their lump sum payment, the Stewarts renew their mortgage with the $310,000 balance, for a further 5-year term at the same interest rate (6.5% compounded semi-annually), over a reduced amortization period of 15 years. Calculate the new monthly payment. Round the payment up to the next dollar. (e) Assuming the interest rate remains the same over the remaining 15 years, what is the size of the final payment?