The interest rate for the first five years of a $27,000 mortgage loan was 7.25% compounded semiannually. The monthly payments computed for a 10-year amortization were rounded to the next higher $10.
a. Calculate the principal balance at the end of the first term.
b. Upon renewal at 6.75% compounded semiannually, monthly payments were calculated for a five-year amortization and again rounded up to the next $10. What will be the amount of the last payment?