Suppose your parents wish to buy a house whose current market value is $150,000. They have approached a loan officer at the Bank of Nova Scotia who offers them 25-year mortgage financing for 75% of the purchase price at an annual rate of 6.75%. Payments are to be made on a monthly basis even though the bank is required by Canadian laws to compound the interest semi-annually. What is the amount of the mortgage loan offered by the Bank of Nova Scotia?
