The MacLellans originally chose to make payments of $160 per month on a $138,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised the right under the mortgage contract to increase the payments by 10%.
a) If the interest rate does not change, when will they extinguish the mortgage debt?
b) What will be the principal balance at the end of the five-year term?

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The Answer of The MacLellans originally chose to make payments of $160 per month on a $138,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised the right under the mortgage contract to increase the payments by 10%.
a) If the interest rate does not change, when will they extinguish the mortgage debt?
b) What will be the principal balance at the end of the five-year term?

The MacLellans Originally Chose to Make Payments of $160 Per