A mortgage for a condominium had a principal balance of $43,500 that had to be amortized over the remaining period of 7 years. The interest rate was fixed at 5.12% compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments.
Round up to the next whole number.
b. If the monthly payments were set at $767, by how much would the time period of the mortgage shorten?
c. If the monthly payments were set at $767, calculate the size of the final payment.