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 25-year mortgage financing for 75% of the purchase price at a rate of 6.75%. Payments are to be made on a monthly basis even though the bank is required by Canadian laws to compound the interest semi-annually. What are the effective annual and monthly rates of interest on the loan? Assuming the loan payments are due at the end of each month: determine the size of the monthly loan payments determine the amortization schedule for the first 3 months determine the principal outstanding at the end of the 5^th year