suppose your parents wish to buy a house whose current market value is $150.000 . They have approached a loan officer at the Bank of Nova Scotia who offers them _ _ _ year mortgage financing for I ` ` of the purchase price at a rate of 6. 7}90 . Payments are to be made on a monthly basis Even though the bank is required by Canadian laws to compound the interest Semi - annually . ( a ) What are the effective annual and monthly rates of interest on the loan ?" ( 5 marks ) ( 6 ) Assuming the loan payments are due at the end of each month :" ( 1) determine the size of the monthly loan payments (7 mark's ) (} marks ) ( II ) determine the amortization schedule for the first ] months ( Ill) determine the principal outstanding at the End of the 5` year. (} marks ) Total ( 5 + 7 + 9 + 9 = 30 marks )