# The interest rate for the first five years of a $27,000 mortgage loan was 7.25% compounded semiannually.

## Question:

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?

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