The interest rate for the first five years of a $90,000 mortgage loan is 7.25% compounded semiannually.
Monthly payments are calculated using a 20-year amortization.
a) What will be the principal balance at the end of the five-year term?
b) What will be the new payments if the loan is renewed at 6.5% compounded semiannually (and the original amortization period is continued)?

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The Answer of The interest rate for the first five years of a $90,000 mortgage loan is 7.25% compounded semiannually.
Monthly payments are calculated using a 20-year amortization.
a) What will be the principal balance at the end of the five-year term?
b) What will be the new payments if the loan is renewed at 6.5% compounded semiannually (and the original amortization period is continued)?

The Interest Rate for the First Five Years of a $90,000