You have just negotiated a 5-year mortgage on $400,000 amortized over 25 years at a rate of 3.5%. After 5 years assume that the mortgage rate remains the same, but you increase the payments by 500 dollars per month, in how many periods (months) will you be able to pay the whole amount. (Hint: Canadian banks quote mortgage rates as a rate per year compounded semi-annually)

Answer rating: 100% (QA)

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