1. Determine the monthly payment for each mortgage. The interest is compounded monthly. 2. 3. a....

  

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1. Determine the monthly payment for each mortgage. The interest is compounded monthly. 2. 3. a. Mortgage amount Amortization period Interest rate $185 000 25 years 30 years 6.25% b. $220 000 5.75% Determine the total interest paid for each of questions in question 1. Ashlee purchased a house for $875 000. She made a down payment of 15% of the purchase price and took out a mortgage for the rest. The mortgage has an interest rate of 6.95% compounded monthly, and amortization period of 20 years, and a 5 year term. Calculate Ashley's monthly payment. 4. 5. €9 Key Question #3 (continued) The Vaughan's have a mortgage of $725 000 amortized over 25 years at 4.25% compounded monthly. After the original 4 year term, the mortgage is renewed at 4.0% compounded monthly. Calculate the new monthly payment. A bank charges 7.75% compounded monthly on a mortgage. The Markins have an excellent credit rating. They negotiated a rate of 7% compounded monthly on a mortgage on $230 000 amortized over 25 years. By how much did the Markins reduce their monthly payment by negotiating the lower rate of interest? 19 1. Determine the monthly payment for each mortgage. The interest is compounded monthly. 2. 3. a. Mortgage amount Amortization period Interest rate $185 000 25 years 30 years 6.25% b. $220 000 5.75% Determine the total interest paid for each of questions in question 1. Ashlee purchased a house for $875 000. She made a down payment of 15% of the purchase price and took out a mortgage for the rest. The mortgage has an interest rate of 6.95% compounded monthly, and amortization period of 20 years, and a 5 year term. Calculate Ashley's monthly payment. 4. 5. €9 Key Question #3 (continued) The Vaughan's have a mortgage of $725 000 amortized over 25 years at 4.25% compounded monthly. After the original 4 year term, the mortgage is renewed at 4.0% compounded monthly. Calculate the new monthly payment. A bank charges 7.75% compounded monthly on a mortgage. The Markins have an excellent credit rating. They negotiated a rate of 7% compounded monthly on a mortgage on $230 000 amortized over 25 years. By how much did the Markins reduce their monthly payment by negotiating the lower rate of interest? 19