Calculating the monthly installment size for a house loan

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Reference no: EM13830302

Problem:

A house worth $70,000 is purchased with a down payment of $20,000 and a mortgage amortized over 20 years. If the interest rate is 14% compounded semi-annually,

a. Determine the size of each monthly payment.

b. How much of the 60th payment goes to interest and how much to principal repayment?

c. Determine the outstanding principal at the end of the 5 year term.

d. If the mortgage is renewed at the end of the first term for another 5 year term at 8% compounded semi-annually and an amortization period of 15 years, how much are the new monthly payments?

Additional Information:

This problem belongs to Mathematics and it is about calculating the monthly installment size for a house loan and calculating the 60th payment's interest and principal amount.

Reference no: EM13830302

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