THE NEXT THREE $(3)$ QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

A $$175,000$ loan bears an interest rate of $4\mathrm{.}25\%$ per annum, compounded semi$-$annually. The loan has a $20-$year amortization period and term. Monthly payments are rounded up to the next higher dollar.

$18.$ What is the amount of interest paid on the ${132}^{nd}$ payment?

$(1)$ $$540\mathrm{.}21$

$(2)$ $$342\mathrm{.}50$

$(3)$ $$272\mathrm{.}26$

$(4)$ $$440\mathrm{.}45$

Assignment $4$ continues next page

$4\mathrm{.}8$

Lesson $4$: Mortgage Loan Analysis

$19.$ What is the amount of principal repaid during Year $3?$

$(1)$ $$6,209\mathrm{.}85$

$(2)$ $$5,954\mathrm{.}11$

$(3)$ $$5,708\mathrm{.}91$

$(4)$ $$6,892\mathrm{.}48$

$20.$ Assume that the borrower elected to have payments on the loan rounded up to the nearest $$100$ and the lender agreed. All other facts are unchanged. Relative to the base case, what will happen to the outstanding balance owing at the end of four years?

$(1)$ It will decrease.

$(2)$ It will increase.

$(3)$ It will not change.

$(4)$ It cannot be determined; there is not enough information.