1. Calculate the monthly payments required to pay off a $250 000 mortgages, assuming the amortization period is 25 years and the interest rate is 5.5% compounded semi-annually.
2. What is the balance at the end of the 5-year term?
3. Assuming a 40% tax refund on RRSP contributions, if the homeowner contributes an extra $500 per month to her RRSP and then uses the tax refund to increase her monthly mortgage payment, how much will she have reduced the balance of her mortgage after 5 years?