Terri and Greg purchased the small cottage for $45,000. They put $5,000 down and negotiated the mortgage with vendor for balance of purchase price. If vendor charges 12.5%, compounded semi-annually, and mortgage is to be repaid over 20 years, determine:
i) required monthly payment.
ii) amount outstanding on mortgage after 2 years of payments.
iii) interest paid by Terri and Greg after 2 years of payments.
iv) total interest cost for the mortgage over the 20-year period.