4. A bank is advertising an interest rate of 4.9% compounded monthly. We learned that the...

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4. A bank is advertising an interest rate of 4.9% compounded monthly. We learned that the interest is actually only compounded semi-annually. Use the provided interest rate adjustment formula from the lesson to determine what the more realistic interest rate is per month. [2 marks] 5. a) Using the 4.9% compounded monthly interest rate from above, determine the monthly payment of 30 year mortgage of $850 000. You are welcome to use the adjust interest rate with the formula or the provided mortgage rate calculator from the lesson. Please include a snapshot of the excel calculator if you choose this method as part of your solution. [2 marks] The monthly payment is $700.42 b) What is the total amount paid over 30 years? How much of that is interest? [2 marks] c) What does this assume and why might you actually end up paying a different total? [1 mark] 4. A bank is advertising an interest rate of 4.9% compounded monthly. We learned that the interest is actually only compounded semi-annually. Use the provided interest rate adjustment formula from the lesson to determine what the more realistic interest rate is per month. [2 marks] 5. a) Using the 4.9% compounded monthly interest rate from above, determine the monthly payment of 30 year mortgage of $850 000. You are welcome to use the adjust interest rate with the formula or the provided mortgage rate calculator from the lesson. Please include a snapshot of the excel calculator if you choose this method as part of your solution. [2 marks] The monthly payment is $700.42 b) What is the total amount paid over 30 years? How much of that is interest? [2 marks] c) What does this assume and why might you actually end up paying a different total? [1 mark]