You take out an $80 000 mortgage atj₂= 9% with a 25-year amortization period.

a)Determine the monthly payment required.

b)Determine the reduced final payment.

c)Determine the total interest paid during the 4th year.

d)At the end of 4 years, you pay down an additional $2500 (no penalty).

i)How much sooner will the mortgage be paid off?

ii)What would be the difference in total payments over the life of the mortgage?

Answer rating: 100% (QA)

Lets break down the problem step by step Given Principal P 80000 Interest rate r 9 per annum Amortization period n 25 years a To determine the monthly ... View the full answer