The interest rate on a $100,000 mortgage loan is 7% compounded semiannually.
a) Calculate the monthly payment for each of 20-year, 25-year, and 30-year amortizations.
b) By what percentage must the monthly payment be increased for a 25-year amortization instead of a 30-year amortization?
c) By what percentage must the monthly payment be increased for a 20-year amortization instead of a 30-year amortization?
d) For each of the three amortization periods in part a, calculate the total interest paid over the entire amortization period (assuming that the interest rate and payments do not change).

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The Answer of The interest rate on a $100,000 mortgage loan is 7% compounded semiannually.
a) Calculate the monthly payment for each of 20-year, 25-year, and 30-year amortizations.
b) By what percentage must the monthly payment be increased for a 25-year amortization instead of a 30-year amortization?
c) By what percentage must the monthly payment be increased for a 20-year amortization instead of a 30-year amortization?
d) For each of the three amortization periods in part a, calculate the total interest paid over the entire amortization period (assuming that the interest rate and payments do not change).

The Interest Rate on a $100,000 Mortgage Loan Is 7