You buy a house for $220,000 with a down payment of 20%. The best available rate is 7.5% compounded semi-annually. You take out a 3-year term mortgage amortized over 20 years. a) Calculate the size of the monthly payment. The lenders policy is to round payments up to the next whole dollar. [4 marks] b) What percent of the mortgage have you paid off after 3 years of payments? [3 marks] c) How much interest did you pay in the 2nd year? [3 marks] d) How much of the 25th payment will be interest? [2 marks] e) After having made 3 years of payments, you make a lump-sum payment to reduce the outstanding balance to $140,000. How much was the lump-sum payment? [4 marks] f) After making the lump sum payment, you renew your mortgage for a further 3- year term at an interest rate of 5.0% compounded semi-annually. You have decided to keep the same payment as before so you can pay off your mortgage faster. How much time is remaining until your mortgage is fully paid off? Assume the interest rate stays at 5% for the remaining time. Answer in months. [4 marks] g) Assuming the interest rate stays the same over the remaining time, what is the size of the final payment? [5 marks]