Mr. HH makes a 10% down payment for a mortgaged home worth GHC 420,000. He obtains the loan and intends to finance it over a 20 year period. The current fixed rate is 18% p.a Use the information above to answer the questions below.

9. Given that the interest rate on a 25-year fixed-payment loan is 8% and the monthly payment is GHC 2,500, determine the remaining balance a borrower has at the end of five years.

10. The following information relates to a 20 year fixed-rate loan. Determine the maximum amount that the lender will be willing to provide to the borrower. Monthly payment: GHC 1,800, Interest rate: 9%

11. Calculate the monthly mortgage payment on a 12-year interest-only mortgage of GHC 30,000. Assume an interest rate of 6.5%.

12. Using the information below, calculate the balloon payment for a partially amortized mortgage. Loan amount: GHC 72,000, Term to maturity: 8 years, Amortization term: 20 years, Interest rate: 7%, Monthly payment: GHC 558.22

13. For how many years will the interest rate of a five-year-one-year adjustable rate mortgage (ARM) be fixed?