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Ali purchased a house for $425,000. He made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.12% compounded semi-annually amortized over 25 years. The interest rate was fixed for a 5 year period.
Question A. Calculate the monthly payment amount.
Question B. Calculate the principal balance at the end of the 5 year term.
Question C. Calculate the monthly payment amount if the mortgage was renewed for another 5 years at 4.32% compounded semi-annually?
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