You have decided to buy a house . You have $50,000 in savings and are able to afford payment of $750 twice a month (payable at the end of each period.) you want to use an amortization period of 20 years and current interest rate are 4.0% compounded semi-annually. You think mortgage rate might change so you decide to arrange a mortgage with a 3 year mortgage agreement.

a. What r value should be used in your calculations?

b.how much are you able to borrow?

c. What is the maximum value of the house you can afford to purchase.

d. How much will you still own after three years.

e.how much have you paid in interest by the end of the three year mortgage agreement?