A mortgage for a condominium had a principal balance of $49,300 that had to be amortized over the remaining period of 8 years. The interest rate was fixed at 3.62% compounded semi-annually and payments were made monthly.
a. Calculate the size of the payments, rounded up to the next whole number.
b. If the monthly payments were set at $692, by how much would the time period of the mortgage shorten?
1 years and 3 months
2 years and 4 months
7 years and 6 months
8 years and 8 months
c. If the monthly payments were set at $692, calculate the size of the final payment.