(Solution) - The interest rate for the first three years of an -(2025 Original AI-Free Solution)

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The interest rate for the first three years of an $87,000 mortgage is 7.4% compounded semiannually. Monthly payments are based on a 20-year amortization. If a $4000 prepayment is made at the end of the sixteenth month:
a. How much will the amortization period be shortened?
b. What will be the principal balance at the end of the three-year term?