Question: Is Number b) Present Value Ordinary Annuity or Present Value Aunnuity Due? compounded quarterly, You think mortgage rates might change so you decide to arrange

Is Number b) Present Value Ordinary Annuity or Present Value Aunnuity Due?

compounded quarterly, You think mortgage rates might change so you decide to arrange a mortgage with a 5 year mortgage agreement. a. What r value should be used in your calculations? (1 point) b. How much are you able to borrow? ( 1.5 points) c. What is the maximum value of the house you can afford to purchase? (0,5 points) d. How much will you still owe after three years? (1.5 points) c. How much have you paid in interest by the end of the three year mortgage agreement? (1.5 points) Please answer with work shown A Anonymous 1. r= periodic rate = (1+3%/4)(4/26)1=0.1150% 2. =Payment/r(11/(1+r)(26n))=750/0.1150%(11/(1+0.1150%)(2620))=293413.48 3. =Loan+Savings =293413.48+50000 =343413.48 4. = Loan* (1+r)n-Biweekly payment /r ((1+r)n1) =293413.48 (1+0.1150%)(263)750/0.1150% * ((1+0.1150%)(263)1) =259765.44 5. = Biweekly payment*26*n-(Loan-Loan balance after n years) =750263(293413.48259765.44) =24851.9600

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