Holly purchased a house for $325,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.72% compounded semi-annually amortized over 20...

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Holly purchased a house for $325,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.72% compounded semi-annually amortized over 20...

Holly purchased a house for $325,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.72% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 5 year period.

a. Calculate the monthly payment amount.

b. Calculate the principal balance at the end of the 5 year term.

c. Calculate the monthly payment amount if the mortgage was renewed for another 5 years at 5.32% compounded semi-annually?

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Answer 1

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Loan Rate EAR 4 243750 5.72% 5.80% Monthly payment 1718.54 10 principal balance at the end of the 5 year term 206261.71 5.39%

325000*75% 0.0572 (1HE5/2)42-1 Loan Rate EAR -PMT(E6/12,20 12,-E4) Monthly payment -PV(E6/12,15 12,-E8) principal balance at

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Holly purchased a house for $325,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.72% compounded semi-annually amortized over 20...

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