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What is the size of the monthly payment

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Question: Bob and Angelique Mackenzie bought a property valued at $84,000 for $15,000 down with the balance amortized over 20 years. The terms of the mortgage require equal payments at the end of each month. Interest on the mortgage is 3.4% compounded semi-annually and the mortgage is renewable after five years.

a. What is the size of the monthly payment?

b. Prepare an amortization schedule for the first five-year term. Make sure your payments are rounded to the nearest cent.

c. What is the cost of financing the debt during the first five-year term?

d. If the mortgage is renewed for a further five years at 4.2% compounded semi-annually, what will be the size of each monthly payment?

Reference no: EM132749541

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