You take out an $80 000 mortgage at j₂ = 9% with a 25-year amortization period. a) Determine the monthly payment required. Already calculated as follows:

b) Determine the reduced final payment.

c) Determine the total interest paid during the 4th year.

d) At the end of 4 years, you pay down an additional $2500 (no penalty).

i) How much sooner will the mortgage be paid off?

ii) What would be the difference in total payments over the life of the mortgage?

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