A couple purchased a home and signed a mortgage contract for $500, 000 to be paid with half-yearly payments over a 25-year period. The interest rate
applicable is j2 = 8.5% p. a. applicable for the first five years, with the condition
that the interest rate will be increased by 4% every 5 years for the remaining
term of the loan.

Based on the given information, your group is required to use Excel software
to:

(a) Calculate the half-yearly payment required for each five-year interval

(b) Calculate the loan outstanding (outstanding balance) at the beginning
of each five-year interval.

(c) Prepare a loan amortization table for the final 12 half-years of the
loan term.