Tuesday.docx - Question A You and your parents have decided to purchase a house in Waterloo that you can live in for the next three years and then rent

Tuesday.docx - Question A You and your parents have decided...

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Question A You and your parents have decided to purchase a house in Waterloo that you can live in for the next three years and then rent to students. The house you purchase is $265,000 and you make a down payment of $35,000. You arrange a 5 year mortgage with a 4.50% interest rate compounded semi-annually. The mortgage has an amortization period of 25 years. What is the size of your monthly mortgage payment (assuming you begin payments at the end of this month)? PMT = $1,272.99 ALL decimals carried for all calculations Question B A friend negotiates a loan to borrow $60,000 at a rate of 7% compounded quarterly. Your friend has agreed to pay $499.08 dollars per month to pay off the loan. How many years will it take for him to pay off his loan, assuming his first payment is at the end of the month? n = 206.6 monthly payments , 17 years 3 months ALL decimals carried for all calculations Question C You borrowed $1000 dollars at a rate of 7% compounded yearly. You make yearly payments of $209.80 for 6 years to pay off the loan beginning at the end of the year. How much interest do you pay in total over the term of the loan? What is the
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  • Winter '12
  • LauraAlan
  • Interest, Payment, Mortgage loan

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