10. Mr. Peter is planning to purchase a shop that costs SA. He plans to put...

 

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10. Mr. Peter is planning to purchase a shop that costs SA. He plans to put B % down in cash and borrow the remainder The mortgage has a C % stated annual interest rate with quarterly compounding and calls for equal quarterly payments due at the end of each quarter over the next 20 years. a) what is the quarterly loan payment? Give your answer correct to the nearest whole number. b) Suppose that after 2 years of repayments, Mr. Peter decide to repay the remaining value of the loan. What is this value? Give your answer correct to the nearest whole number. c) Suppose that Mr. Peter's loan officer agrees to change the frequency of repayments to semi-annual, with the first payment due in six months (size, overall length of contract stays the same). Assume the stated annual interest rate is still B % with quarterly compounding. What is the semi-annual payment implied by this new contract? Give your answer correct to the nearest whole number. A B с years $ 56,250.00 20% 15.25% 20 10. Mr. Peter is planning to purchase a shop that costs SA. He plans to put B % down in cash and borrow the remainder The mortgage has a C % stated annual interest rate with quarterly compounding and calls for equal quarterly payments due at the end of each quarter over the next 20 years. a) what is the quarterly loan payment? Give your answer correct to the nearest whole number. b) Suppose that after 2 years of repayments, Mr. Peter decide to repay the remaining value of the loan. What is this value? Give your answer correct to the nearest whole number. c) Suppose that Mr. Peter's loan officer agrees to change the frequency of repayments to semi-annual, with the first payment due in six months (size, overall length of contract stays the same). Assume the stated annual interest rate is still B % with quarterly compounding. What is the semi-annual payment implied by this new contract? Give your answer correct to the nearest whole number. A B с years $ 56,250.00 20% 15.25% 20

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