You arrange a 5-year mortgage with a 5.50% interest rate compounded semi-annually. The mortgage has an amortization
Question:
You arrange a 5-year mortgage with a 5.50% interest rate compounded semi-annually. The mortgage has an amortization period of 25 years. What is the size of your monthly mortgage payment (assuming you begin payments at the end of this month if you bought the house for $265,000 and intend to mortgage the entire amount)?
How does your calculation change if you put a down payment of $70,000 and what would the new payment amount be?
If you know, today, that you will be able to make a lump-sum payment of $20,000 at the end of the first 5 years and you want to adjust your payments accordingly, how would you integrate that into your calculations?
How much principal have you repaid when the time comes to renew your mortgage assuming you signed a 5-year mortgage agreement and make an unanticipated lump sum of $20,000 before you renew?
You want to retire in 35 years and anticipate living for another 45 years after that. Immediately upon retirement, you want to begin withdrawing $8,000 monthly for living expenses and also want to take a trip at the start of your third retirement year costing $5,000, another at the end of year 10 costing $6,000, and another two at the end of years 20 and 35 that will each cost $7,000. You want to leave $150,000 to set up a scholarship in your name at Laurier when you pass away. You intend to save monthly from now until then and will put the money into an account that earns 4%, compounded semi-annually. You also anticipate that your Youtube channel will continue to provide royalties of $50 per month after you retire. How much must you save every month to make this dream possible?