Ife takes out a mortgage for $775000 with bi-weekly (26 payments per year) payments. The effective annual interest rate is 3%. The mortgage has a 20 year amortization period (so the payments are calculated to pay off the mortgage in exactly 20 years.)

a) How much is her bi-weekly payment?

b) How much of her first payment is interest?

c) How much of her first payment is principal reduction? 4 years later, she is making her 104th payment.

d) What is her outstanding balance just after she makes this payment?

e) How much of her 104th payment is interest? (Be careful! This is not just the interest on the amount from d))

f) How much of her 104th payment is principal reduction?