The interest rate for the first five years of a $27,000 mortgage loan was 7.25% compounded semi-annually. The monthly payments computed for a 10-year amortization were rounded to the next higher $10.
a) Calculate the principal balance at the end of the first term.
b) Upon renewal at 6.75% compounded semi-annually, monthly payments were calculated for a 5-year amortization and again rounded up to the next $10. What will be the amount of the last payment?

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The Answer of The interest rate for the first five years of a $27,000 mortgage loan was 7.25% compounded semi-annually. The monthly payments computed for a 10-year amortization were rounded to the next higher $10.
a) Calculate the principal balance at the end of the first term.
b) Upon renewal at 6.75% compounded semi-annually, monthly payments were calculated for a 5-year amortization and again rounded up to the next $10. What will be the amount of the last payment?

The Interest Rate for the First Five Years of a $27,000