Exactly 10 years ago, Mr. Wayne Gretski purchased a beautiful condo at Whistler for $875,000 and made a down payment of $310,000.  The balance was mortgaged at the Canada Bank at  2.75% compounded semi-annually with monthly payments over 25 years. The interest rate was fixed for a 5 year term, and lump sum payments were allowed at the end of each 5 years without penalty.

 

i)          Calculate the monthly payment for the first 5 years.  ROUND UP TO THE NEXT CENT.

ii)         Construct an amortization schedule for the first 60 months.  (A schedule showing only the first 3 months, and months 57 to 60 inclusive, with 60 month totals is also required.)

iii)        Calculate the principal outstanding at the end of the first 5 years.

iv)        What percentage of the first five years total monthly payments went to reduction of the debt, and what percentage went to interest?

v)         What percentage of the debt has been paid off by the first five years of payments?

Answer rating: 100% (QA)

condo 875000 DP 310000 loan amount 875000310000 Loan Amount 56500000 Annual Interest Rate 275 Term of Loan in Years 25 Payment Frequency Monthly Compo... View the full answer