A $25,000 mortgage loan charges interest at 6.6% compounded monthly for a three-year term. Monthly payments were calculated for a 10-year amortization and then rounded up to the next higher $10.
a. What will be the principal balance at the end of the first term?
b. What will be the monthly payments on renewal for a three-year term if they are calculated for an interest rate of 7.2% compounded monthly and an 11-year amortization period, but again rounded to the next higher $10?

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a The principal balance at the end of the first term will be 22427 b The monthly payments on renewal ... View the full answer