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Rebecca Bought a House in Oshawa and Took a $259

Question 78

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Rebecca bought a house in Oshawa and took a $259 000 mortgage amortized by monthly payments over 25 years that is renewable after 5 years. If interest is 4.4% compounded semi-annually, what is the outstanding balance at the end of the five year term?
If the mortgage is renewed for a further 5 year term at 3.7% compounded semi-annually, what is the balance after the second 5 year term?

Correct Answer:

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PV = $259 000; n = 25 × 12 = 300; P/Y = ...

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