Question: answer for e and f written show steps please QuestIuI120 pm Enter the complete solution for each part in the space provided below. Highlight in

answer for e and f  answer for e and f written show steps please QuestIuI120 pm
written show steps please

QuestIuI120 pm Enter the complete solution for each part in the space provided below. Highlight in BOLD your final answer for each part. Note for Part a, b, c, d, and e the solutions only require the financial calculator. For Part f you will need to use some algebra to solve the question. A $200,000 mortgage is to be amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually. a. (3 Marks) Find the size of the regular monthly payment (round up to the nearest cent) and the size of the final smaller payment. b. (1 Mark) What is the outstanding balance after 2 years? c. (1 Mark) How much interest is paid over the life of the mortgage? d. (3 Marks) If the mortgage was amortized over 20 years with monthly payments instead of 25 years with monthly payments. How much interest is paid over the life of the mortgage? e. (6 Marks)) Based on the original mortgage (A $200,000 mortgage amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually), suppose you made a single lump sum payment of $6000 at the end of the second year of the mortgage. ). How long would it now take to pay off the mortgage (calculate the number of years)? How much interest is paid over the life of the mortgage? f. (6 Marks) Based on the original mortgage (A $200,000 mortgage amortized over 25 years with monthly payments at an interest rate of 6% compounded semi-annually). Suppose you made a double up payment every six months (in other words every six months you make an extra payment) and at the end of each year you make a lump sum payment of $3000. How long would it now take to pay off the mortgage (calculate the number of years)? How much interest is paid over the life of the mortgage

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!