Question: I'm having difficulty solving this problem, I'm having issues understanding some of the concepts and when I use the financial calculator I'm not sure what

I'm having difficulty solving this problem, I'm having issues understanding some of the concepts and when I use the financial calculator I'm not sure what to input.

Here is the problem:

Anusha and Naveen are planning to buy their first home.They have saved $30,000 and will withdraw the maximum from their RRSPs under the Home Buyers' Plan.They will pay the cost of CMHC mortgage loan insurance separately.They estimate closing costs at $8,200 and will take a 25-year mortgage at a rate of 3.2%, compounded semi-annually, for a 3-year term.They will pay the mortgage monthly.The home they wish to buy costs $450,000.

Part b

How much will CMHC loan insurance cost?

CMHC mortgage loan insurance cost calculation

Part c

What will be the couple's monthly mortgage payment and loan balance at the end of their term?

Monthly mortgage payment calculation

Mortgage loan balance at end of term

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