You are interested in purchasing a plot of land for $150,000. The bank is offering you a loan worth 75 percent of the value of the property at mortgage rate of 3.45 percent. The loan is insured by Canada Mortgage and Housing Corporation for the maximum amortization period. How much will you pay in mortgage (rounded to the nearest dollar) to the bank in one year? The mortgage is compounded semi-annually.

$559

$745

$6,705

$8,939

None of the above