You take out a mortgage today of $350,000 with a 25-year amortization period, a 5-year term, and a 6.25% (annual) posted mortgage interest rate. Suppose four years from today, you decide to refinance your mortgage at a 5.50% (annual) mortgage interest rate. Also, you would like to increase your payment frequency from monthly to weekly. (Assume your mortgage payments are made at the end of each month or week). (a) What is your original monthly payment on the mortgage? (5 marks) (b) What is the remaining balance on the mortgage after 4 years? (c) What will be your weekly payment on the refinanced mortgage? (There are 52 weeks in a year. (d) Are you paying more or less on a monthly basis once you refinance your mortgage if your discount rate is 8%, compounded annually? (Assume that there 4.3333 weeks per month)

5 years from now YOU will not find a 5.5% annual rzte except in your dreams . Do your homework else where please.