Helen purchased a house for $450,000. She made a downpayment of15% of the value of the house and received a mortgage for the restof the amount at 5.50% compounded semi-annually for 15 years. Theinterest rate was fixed for a 5-year term.
a. Calculate the size of the monthlypayments.
Round to the nearest cent
b. Calculate the principal balance at the endof the 5-year term.
Round to the nearest cent
c. Calculate the size of the monthly paymentsif after the first 5-year term the mortgage was renewed for another5-year term at 5.25% compounded semi-annually?
Round to the nearest cent
