Instructions:

-Problems must be solved using MS EXCEL

-if any assumptions made to solve the problem, clearly state them at the beginning of the solution and explain the reason

WINTER 2018 AFF 210 ASSIGNMENT ONE You are planing to buy a 4-bedroom house in Hamilton that has a price of S1,000,000. One of the local banks offered you a mortgage at a quoted rate 6% per year. Interest will be compounded semi-annually e bank has indicated that they will require 30% down payment. The bank is prepared to lend you the remainder of the purchase price of the house. The amortization period will be 25 years and the term of the mortgage will be 5 years. You are going to make biweekly payments on your mortgage. The paymems will be made at the end of each period. You have heard from your friend who has just completed AFF210, that by making additional payments on your mortgage during the initial term, you can reduce the remaining balance at the end of the initial term. Your friend has shown you a sample amortization schedule template (below) Sample Mortgage Schedule INTEREST PRINCEPAL PRINCIPAL PAYMENT PRINCIPAL AMOUNT OF NUMBER AMOUNT AT THE |