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Question - A mortgage of $200,000 is to be paid over a 20-year period with 2 payments each year. The interest rate of which is j2 = 6.6% per year relevant for the first five years, the catch being that the rate of interest will be raised by 10% every 5 years for the rest of the loan term.
(a) Calculate the bi-yearly payment required for each five-year interval.
(b) Calculate the loan outstanding at the beginning of each five year interval.
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