Question 1 (10 points) Four years ago the Gipsons purchased a town house for $850,000. They made a down payment of 20% and took out a mortgage with BMO for the balance. They amortized the mortgage over 25 years at 3.1% compounded semi-annually for a 4- year term. (a) Calculate their monthly payment. The bank rounds the payment up to the next dollar. (b) How much of the 48th payment was interest? Express your answer in 2 decimal places and do not enter "$" sign. (c) How much interest did they pay in the 4th year (Year 4) of the mortgage? Express your answer in 2 decimal places and do not enter "$" sign. (d) What percentage of the mortgage have they paid off after making 4 years of payments? Express your answer in 2 decimal places and do not enter "%" sign. (e) After making four years of payments, they made a lump-sum payment to reduce the balance owing to $580,000. How much was the lump-sum payment? Express your answer in 2 decimal places and do not enter "$" sign. Previous Page Next Page Page 1 of 2