The interest rate for the first five years of a $95,000 mortgage is 9.5% compounded semiannually. Monthly payments are based on a 25-year amortization. If a $3000 prepayment is made at the end of the third year:
a) How much will the amortization period be shortened?
b) What will be the principal balance at the end of the five-year term?

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The Answer of The interest rate for the first five years of a $95,000 mortgage is 9.5% compounded semiannually. Monthly payments are based on a 25-year amortization. If a $3000 prepayment is made at the end of the third year:
a) How much will the amortization period be shortened?
b) What will be the principal balance at the end of the five-year term?

The Interest Rate for the First Five Years of a $95,000