Question

8. On June 30, 2018, you closed on your new condominium and obtained a $250,000 thirty year mortgage at an APR of 4.32%. The first monthly payment was due at that time (June 30, 2018), and then on the last day of each month thereafter (this is an "annuity in advance" or an "annuity due"). What was the amount of your required monthly payment? a. b. Assuming that you made all payments exactly when due, how much interest would you have paid on the mortgage in the year ending December 31, 2018? C. How much interest would you pay in 2019 if you made all of your scheduled payments exactly when due? d. If the interest rate were to increase to 4.62% after sixty payments, what would be the amount of your new monthly payment? (the life of the mortgage would be unchanged).

Answer 1

Paste Format Painter F Merge & Center Font Alignment Numt Clipboard H12 А B D E 1 2 1 2 3 4 5 LOAN AMOUNT TENURE IN MONTHS) [email protected] % PA [email protected] % PA С 250000 360 0.360% 0.385% 4 5 6 a monthly payment *-1,235.67 8b Intt. Amonut for the year ending 2018 *-5,354.85 9 10 C Intt. Amonut for the year ending 2019 *-10,496.97 if the intt rate increase to 4.62% after 60th payment then new monthly payment *-1,269.28 5 12 d 13 14 15 16 17 18 19 Principle paid upto 60th payment therefore balance outstanding on 60th payment -23,548.33 * 2,26,451.67