A couple took out a mortgage for $135,000 on a home they arepurchasing. The mortgage has an amortization period of 20 years and aterm of five years. The interest rate is 8% compounded semi-annually.
a. What was the size of the monthly mortgage payments in the first five years of the mortgage?
b. At the end of the first five years, the mortgage was renewed at 12%compounded semi-annually. What was the size of the newmortgage payment?
c. Suppose the couple decide to make weekly payments on theirrenewed mortgage. What is the size of their weekly payments?