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Melanie purchased a house for $325,000. She made a down payment of 30.00% of the value of the house and received a mortgage for the rest of the amount at 5.02% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 3 year period. a. Calculate the monthly payment amount. $0.00 Round to the nearest cent b. Calculate the principal balance at the end of the 3 year term. $0.00 Round to the nearest cent c. Calculate the monthly payment amount if the mortgage was renewed for another 3 years at 4.52% compounded semi-annually? Round to the nearest cent Question 1 of 6 Katie purchased a house for $475,000. She made a down payment of 10.00% of the value of the house and received a mortgage for the rest of the amount at 4.62% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 3 year period. a. Calculate the monthly payment amount. $2,722.18 o Round to the nearest cent Solution Read 12.2 Mortgages The correct answer is $2,722.18. 10.00% of the mortgage was paid as a downpayment. The PV of the loan amount is: PV of mortgage = 475,000.00 (1 0.1) = $427,500.00 2nd P/Y 12 Enter OCHY 2 Enter 2nd Quit 240 N 2nd PAY 12 Enter I CNY 2 Enter 2nd Quit 240 N 4.62 IVY 427,500 PV O FV CPT PMT PMT= -2,722.18 Answer is: $2,722.18. Therefore, the monthly payment amount was $2,722.18. b. Calculate the principal balance at the end of the 3 year term. Round to the nearest cent Solution Read 12.2 Mortgages The correct answer 2.85.200.22 b. Calculate the principal balance at the end of the 3 year term. Round to the nearest cent Solution Read 12.2 Mortgages The correct answer is $385,450.27. 2nd AMORT 36 P1 ENTER 36 P2 ENTER Balance = 385,450.27 Answer is: $385,450.27. Therefore, the principal balance was $385,450.27. c. Calculate the monthly payment amount if the mortgage was renewed for another 3 years at 4.62% compounded semi-annually? $2,722.18 Round to the nearest cent Solution Read 12.2 Mortgages The correct answer is $2,722.18. The correct answer is $2.722.18. Amortization period = 20 - 3 = 17 years Principal = Principal balance after 6 years = $385,45 2nd PN 12 Enter DC/Y 2 Enter 2nd Quit 204 N 4.62 IVY 385,450.27 +7- PV O FV CPT PMT -2,722.18 Answer is: $2,722.18. Therefore, the monthly payment amount for the renewed mortgage was $2,722.18. Next