Sarah's house was purchased for $300,000 exactly three years ago and is worth $356,000 now. At...

Transcribed Image Text:

Sarah's house was purchased for $300,000 exactly three years ago and is worth $356,000 now. At the time of purchase, Sarah took out a three-year fixed mortgage of $260,000 amortized over 25 years, at three percent interest compounded semi- annually. She makes monthly payments. Required (show all calculations): How much is the monthly payment on this mortgage? Question 1b (4 marks) Refer to the facts in the previous question. At the end of the original three-year term, Sarah obtained a renewal rate of 3.5% for a new three- year term. Required (show all calculations): How much is her new monthly mortgage payment under the renewal? Sarah's house was purchased for $300,000 exactly three years ago and is worth $356,000 now. At the time of purchase, Sarah took out a three-year fixed mortgage of $260,000 amortized over 25 years, at three percent interest compounded semi- annually. She makes monthly payments. Required (show all calculations): How much is the monthly payment on this mortgage? Question 1b (4 marks) Refer to the facts in the previous question. At the end of the original three-year term, Sarah obtained a renewal rate of 3.5% for a new three- year term. Required (show all calculations): How much is her new monthly mortgage payment under the renewal?

Answer rating: 100% (QA)

Question 1a PV 260000 n 2512 300 months r 0032 0015 ... View the full answer