Need help with this question. For A) mortgage rates are stated as an annual rate with semi-annual compounding.

10. Gilles and Lisette are planning to buy a new house in Outremont. They have seen their dream house, which is offered at $300,000. Taxes are currently $3,000 p.a. on this house. Their current home on the south shore is fully and they have received an offer to purchase for $120,000, which leaves $110,000 after paying the realtor and legal fees. They are planning to use this for the down payment, and they will cover other costs from their savings. The residential mortgage rate for a five-year term is 7.9%. Their combined gross income is $65,000 p.a. and they will be paying off a student loan for the next six years, at a rate of $229 per month. (a) How much will their monthly mortgage payment be if they take a five- year term, amortized over 25 years? lending practices? four years? (b) Will they qualify for a first mortgage of $190,000 under normal bank (c) If they do get a mortgage, what will be the outstanding balance after