Question: f. (6 Marks) Based on the original mortgage (A $200,000 mortgage amortized over 25 years with monthly payments at an interest rate of 6% compounded

f. (6 Marks) Based on the original mortgage (A $200,000 mortgage amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually). Suppose you made a double up payment every six months (in other words every six months you make an extra payment) and at the end of each year you make a lump sum payment of $3000. How long would it now take to pay off the mortgage (calculate the number of years)? How much interest would be saved (when compared to the original mortgage)? 12 79. 6 2 + 12 79 . 6 2 ( 1 4 1 1 2 ) + 1 279. 62 + 3000 21377. 10 ANNUALLY I lyn 6 pv 200000 Plan! & pm + - 21377. 10 Clyn 2 N 1 4 . 2 6 7 9 RS - 14 yn 3. 2 now 4 now nti LAST Pint 200000 ( 1 + Liz ) 172 - 21377.10 1 1 1.0609 ) " - 1 ( pitcial - 1279. 62 / ( 1the ) -' ( citie ) 1730. 03 L . 2 TOTAL PAYMENTS ( 12 7 9 . 6 2 x 1 68 ) + ( 1 2 7 5 . 6 2 x 14 x 2 ) + ( 127 5. 62 x 3 ) 1 (3000 x 14 ) + 1730. 05 298 3 7 4 4 3 2 98 3 74 . 4 3- 200020 9 8 374. 43 18 3 8 8 1 . 3 7 - 98 374-43 8 5 50 6.9 4

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