Question

Section 5 - Mortgage Calculation Instructions Find the MONTHLY mortgage PAYMENT of stress tested(+2%) on your rate of 3.21% with a 25 year amortization mortgage. You will use the mortgage amount from previous sections. You must also determine the amount of INTEREST, PRINCIPAL and BALANCE owing for the mortgage after 3 Years and 7 Months. Input all the TVM variables and answers into the fields below. - Amortization Mortgage Amount From Previous Question $378102 25 Years Present Value of Loan (PV P 1 Months P2 Months Number of Periods (N) - Monthly Payment (PMT) BALANCE OWING (BAL) Mortgage Rate As % (1/) Value At End of Loan (FV) PRINCIPAL PAID (PRN) Section Value: 7 INTEREST PAID (INT) Submit Answers

Answer 1

Mortgage = $ 378102, Interest Rate = 3.21 %, Tenure = 25 years or (25 x 12) = 300 months, Applicable Monthly Interest Rate = 3.21 / 12 = 0.2675 %

Let the monthly repayments be $ p

Therefore, 378102 = p x (1/0.002675) x [1-{1/(1.002675)^(300)}]

378102 = p x 206.098

p = 378102 / 206.098 = $ 1834.57

Time Elapsed: 3years 7 months or (3 x 12) = 36 + 7 = 43 months

Remaining Time = 300 - 43 = 257 months

Outstanding Balance after 43 months = 1834.57 x (1/0.002675) x [1-{1/(1.002675)^(257)}] = $ 340643.538

Principal Paid = 378102 - 340643.538 = $ 37458.462

Interest Paid = 1834.57 x 43 - 37458.462 = $ 41428.167