Kelly purchased a house for $325,000. She made a downpayment of 25% of the value...
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Kelly purchased a house for $325,000. She made a downpayment of 25% of the value of the house and received a mortgage for the rest of the amount at 5.50% compounded semi-annually for 25 years. The interest rate was fixed for a 5-year term.
a. Calculate the size of the monthly payments.
Round to the nearest cent
b. Calculate the principal balance at the end of the 5-year term.
Round to the nearest cent
c. Calculate the size of the monthly payments if after the first 5-year term the mortgage was renewed for another 5-year term at 5.25% compounded semi-annually?
Round to the nearest cent
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