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SOLUTION
Given the question in the image, the following are the solution steps to answer the question.
STEP 1: Write the given values
[tex]\begin{gathered} Total\text{ payment}=242000 \\ down\text{ payment}=55\% \\ rate\text{ for compunding}=8.2\%=\frac{8.2}{100}=0.082 \\ n=2\text{ since it is compounded semi-annually} \\ t=5\text{ years} \end{gathered}[/tex]STEP 2: Find the mortgage value
[tex]mortgage\text{ }value=Total\text{ payment}-Down\text{ payment}[/tex]Down payment will be calculated:
[tex]\begin{gathered} 55\%\text{ of \$242000} \\ \frac{55}{100}\cdot242000=0.55\cdot242000=\text{ \$}133100 \end{gathered}[/tex]To calculate the mortgage value, we first calculate the compounded amount,
[tex]\begin{gathered} A = P(1 + \frac{r}{n})^{nt} \\ A=108900\cdot(1+\frac{0.082}{2})^{2\cdot5} \\ A=108900\cdot(1.041)^{10} \\ A=162755.3131\approx\text{ \$}162755.31 \end{gathered}[/tex]Hence, the mortgage value will be approximately $162755.31
Then we calculate the monthly payments
Number of months between 25 years will be:
[tex]\begin{gathered} 1\text{ year}=12\text{ months} \\ 25\text{ years}=25\cdot12=300\text{ months} \end{gathered}[/tex]Therefore, the monthly payments will be:
[tex]\text{ }\frac{\text{ \$}162755.31}{300}=542.5177\approx\text{ \$}542.52[/tex]The monthly payments will be approximately $542.52
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