1. Mr. Wong takes out a $180 000 mortgage to purchase a new house. The interest rate is 6.4% /a, compounded semi-annually. He makes monthly payments of $1200.00. How long will it take to pay off the mortgage?How much interest is paid over the life of the mortgage?
2. Mr. Jones takes out a mortgage of $120 000 to purchase a home. The mortgage is amortized over 25 years, and the interest rate is 6.5% /a, compounded semi-annually. Determine the monthly payments. How much interest is paid over the life of the mortgage?What monthly payments are required to pay off the mortgage in 20 years?
3. How much in interest charges is saved by doing this?