Problem
A $96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 8.6% compounded semi annually for a six year term.
1. Compute the size of the monthly payment.
2. Determine the balance at the end of the six-year term.
3. If the mortgage is renewed for a six year term at 3% compounded semi-annually, what is the size of the monthly payment for the renewal term?