A mortgage for a condominium had a principal balance of $$42,500$ that had to be amortized over the remaining period of $5$ years. The interest rate was fixed at $5\mathrm{.}22\%$ compounded semi$-$annually and payments were made monthly.

a$.$ Calculate the size of the payments.

Round up to the next whole number

b$.$ If the monthly payments were set at $$956,$ by how much would the time period of the mortgage shorten?

year$($s$)$ months

c$.$ If the monthly payments were set at $$956,$ calculate the size of the final payment.

Answer rating: 100% (QA)

a To calculate the size of the payments we can use the formula for the monthly payment on an amortiz... View the full answer