Jordan and Mike are both planning on attending university in Calgary. Jordan's parents rent him a one bedroom apartment for $750 per month. Mike's parents bought a 3 bedroom house for $285000 that required a down payment of 10% and offered a mortgage amortized over 20 years at an annual rate of 4.15% compounded semi-annually for a 5 year term. They rented the other two rooms out for $600 per month. The house depreciated in value by 1.5% a year and the cost of taxes and maintenance averaged $3000 a year. 

How much did Jordan's parents pay in rent over the 5 years?

 How much had the house lost in value [money] over the 5 years? 

Assuming the house was sold at market value after 5 years, how much would Mike's parents receive from the sale?

How much did Mike's parents have to subsidize the rent for the 5 year term?

Answer rating: 100% (QA)

Jordans parents paid a total rent of 750month x 12 monthsyear x 5 years 45000 over the 5 years ... View the full answer