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The images contain text related to a loan amortization scenario. Below is the extracted information:

**Information:**
A $175,000 loan bears an interest rate of 4.25% per annum, compounded semi-annually. The loan has a 20-year amortization period and term. Monthly payments are rounded up to the next higher dollar.

**Questions:**

1. What is the amount of interest paid on the 132nd payment?
   - (1) $540.21
   - (2) $342.50
   - (3) $272.26
   - (4) $404.58

2. What is the amount of principal repaid during Year 3?
   - (1) $6,209.85
   - (2) $5,954.11
   - (3) $5,708.91
   - (4) $6,992.48

3. Assume that the borrower elected to have payments on the loan rounded up to the nearest $100 and the lender agreed. All other facts are unchanged. Relative to the base case, what will happen to the outstanding balance owing at the end of four years?
   - (1) It will decrease.
   - (2) It will increase.
   - (3) It will not change.
   - (4) It cannot be determined; there is not enough information.

Would you like detailed solutions or further information on any of these questions? Here are some related questions you might consider asking:

1. How do you calculate the monthly payment on a loan with compound interest?
2. What is the formula for finding the interest portion of a loan payment?
3. How does rounding up monthly payments affect the total interest paid on a loan?
4. What factors influence the principal repayment schedule in an amortizing loan?
5. How can the amortization period impact the overall cost of a loan?

**Tip:** Understanding how interest is compounded and how it affects your payments is crucial for managing long-term loans effectively.

Explore detailed solutions for loan amortization and compound interest problems, including calculations for interest paid on specific payments and principal repayment schedules. Topics cover the impact of rounding up monthly payments and how it affects total interest paid. Ideal for advanced high school students or anyone interested in understanding loan management.

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