Terry buys a $600,000 home. He puts down 25% and mortgages the remainder over 25 years. The mortgage rate is 8% compounded semi-annually.
a) [2pt] If payments are made at the end of each month, then the monthly payment to the nearest dollar is $3434. Find the answer to the nearest cent.
b) (2pt] If Terry instead makes monthly payments of $3500, determine the outstanding loan balance at the end of the 4th year.
c)] [4pt} Terry doubles the payment to $7000 during the 5th year. At the end of the 5th year he refinances the loan at 6% compounded semi-annually over 10 years. Find the new the monthly payment to the nearest cent.
