; Mid-Term Exam names-Zoom x @ Newiab (- C classroomgoogle com Apps ' Gmaik - YouTube E Readinglist 6 PW Mid-Term Exam.pdf 5 Open with Googie Docs v Question 1: Taneja Stationaries borrowed $10,000 from Duca Credit Union at 6% compounded quarterly. The loan is to be repaid by quarterly payments over a twoyear term. Construct the amortization schedule for the loan. [4 Marks] Question 2: A $500,000 mortgage loan is written with a 25-year amortization period, a fivevyear term, and an interest rate of 1.8%. Payments are made monthly. What will be the balance at the end of the five- year term? The size of the payments upon renewal for a three-year term at 4.8%? [4 Marks] Question 3: A couple have saved $120,000 forthe down payment on a home. Their monthly gross income is $8,000. They have no existing loans. Their bank has upper limit of 32% for 605 ratio and 40% for the TDS ratio. Allowing for property taxes of $150 per month and heating costs of $100 per month, what maximum monthly mortgage payment do the GDS and TDS ratios permit? What is the maximum mortgage loan for which the couple can quality (Use a 30-year amortization and an interest rate of 1.5% compounded semiannually for a fiveyear term)? what is the maximum amount they can pay for buying a house? [2 + 2 + 1 = 5 Marks] Question 4: The interest rate for the first fiveyear term of a $400,000 mortgage loan is 2.1% compounded semi-annually. The mortgage requires monthly payments over a 25-year period. Suppose that, at the end of the third year of the mortgage, the borrower makes a prepayment of $80,000. How much will the amortization period shortened? [4 Marks] Question 5: The current market price of a Walmart stock is $146.00. The company has a dividend yield of 1.5% and their dividend payout ratio (percentage of earnings that is distributed as dividends to the stockholders) is 60%. What was its earnings per share last year? [3 Marks] e+