Question

Question 1 of 4 Cameron purchased a house for $450,000. He made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 4.32% compounded semi-annually amortized over 25 years. The interest rate was fixed for a 6 year period. a. Calculate the monthly payment amount. $0.00 Round to the nearest cent b. Calculate the principal balance at the end of the 6 year term. $0.00 Round to the nearest cent C. Calculate the monthly payment amount if the mortgage was renewed for another 6 years at 3.32% compounded semi-annually? Round to the nearest cent Next Question

Answer 1

А Value of house Loan Rate Effective annual rate Years Periods in year 450000 315000 4.32% 4.37% 25 12 a) Monthly payment 1727.12 b) Loan balance after 6 years Years left Principal balance 19 267285.74 13 c) Loan Rate Effective annual rate Years Period in a year Monthly payment 267285.74 3.32% 3.35% 19 12 1585.96

EXCEL FORMULA:

ДА B Value of house Loan Rate Effective annual rate Years Periods in year 450000 =C1*(1-30%) 0.0432 =(1+0.0432/2)^2-1 25 12 a) Monthly payment =PMT(C4/C6,C5*C6,-C2) 10 11 b) Loan balance after 6 years Years left Principal balance 12 =25-6 =PV(C4/C6, C11*C6,-08) 14 c) Loan Rate 15 16 =C12 0.0332 =(1+0.0332/2)^2-1 19 Effective annual rate Years Period in a year Monthly payment 12 =PMT(C16/018, C17*C18,-C14) 20