might ulS y The Steins buy a house and take out a $255 000 mortgage. The mortgage is amortized over 25 years with monthly payments at (2) 9%. After 3 years, the Steins sell their house and the buyer wants to set up a new mortgage better tailored to his needs. The Steins find out that in addition to repaying the principal balance on their mortgage, they must pay a penalty equal to three months interest on the outstanding balance. What total amount must they repay 7. A couple borrows $15 000 to be repaid with