A mortgage for a condominium had a principal balance of $46,000 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 4.52% compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments.
Round up to the next whole number
b. If the monthly payments were set at $789, by how much would the time period of the mortgage shorten?
year(s)
months
c. If the monthly payments were set at $789, calculate the size of the final payment.