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The Melnyks Are Nearing the End of the First Three-Year

Question 63

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The Melnyks are nearing the end of the first three-year term of a $200,000 mortgage loan with a 20-year amortization. The interest rate has been 7.7% compounded semi-annually for the initial term. How much will their monthly payments decrease if the interest rate upon renewal is 6.7% compounded semi-annually?

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