The interest rate on a $100,000 mortgage loan is 7% compounded semiannually.
a. What are the monthly payments for a 25-year amortization?
b. Suppose that the borrower instead makes weekly payments equal to one-fourth of the monthly payment calculated in Part (a). (In mortgage terminology, these are referred to as accelerated weekly payments.) When will the loan be paid off if the interest rate does not change? Assume there are exactly 52 weeks in a year.