You just received a $5000 income tax refund and are deciding what you do with the money. You could buy a tax-free savings(TFSA) term doposit that pays 3.75% compounded monthly or you could use the money to pay down your mortgage. The interest rate on your mortgage is 4% compounded semi-annually. Convert the mortgage rate of 4% to an equivalent rate, compounded monthly, so you can compare the two alternatives