Question 6 (25 marks Case study 2 - Mortgages Mr. and Mrs. Cavern and their three children live in their home 25 Selvac Ave, on which they have a mortgage balance of 2.500,000. This property has been appraised as $8,500,000 and is now up for sale at its current market value. A purchaser has been identified but the proceeds from the sale is not due to be paid to the Cavem March 31, 2021 In the meantime the Caverns have contracted to purchase a sex home a Lookout Glade for $25,000,000. although this property is valued at only $23.000.000. The sale agreement on this property requires a deposit of 20% on signing which will take place on December 15, 2020. with the balance which will not be covered by a mong payable in 30 days after signing Based on their high salaries, North Caribbean Dolding Society have pre-approved the Cavems for a 25-year mortgage of 75% of purchase price or valor whichever is less up to a maximum of $20,000,000. This will attract an interest te of 55% per annum with monthly compounding and will be disbursed on February 1, 2021 JNNB Lad, a commercial bank, is offering a bridging Soon of up to $17,000,000 for 120 days at an interest rate of 8.50% per annum and the Cavems will only use the minimum amount needed of this lo A closing cost of $1.250,000, which must be paid en spring of the sale agreement will be associated with purhase of the new home The Caverns also have swings of S 2.250,000 which will be available for me in their new home transactions Final payment for the new property, possession of both properties and dishursement of the bridging loan will take place on January 31, 2001 The Cavernes also have a bond with a face value of $12,000,000 he will mature on September 29, 2030 How much cash must the Covers pay en siguing the sale cement for their new home? 2 Marks) How much of the purchase price will be financed by the longumongape? (2Marks) How much should they pay on the second deposit? 2 C. Marks) e. 1 How much equity does the Caverns have in their old house? Marks) When the Caveras move in, what will be their equity in the property, assuming that the value of the new home remains at its current valution? (Emarks) How much should they borrow if they take a biglan? (bearing in mind that they will only use the minimum needed) Marks) How much Interest will they pay on the bridge loan for the period February 1 to April 30, 20217 (2 Marks Lise Excel to construct a full amortisation table showing the balance of the loan at maturity (4 Marks) I. In the event that the Caverns decide to use proceeds from the bond immediately it matures to pay off their mortgage will they have sufficient funds to do so? How much interest will they have paid over the period? This qotion must be manually calculated showing all workings. 4 Marks) 3. If the Caverns are planning to keep their new mong pumility, what would be the nail interest payable over the period, assuming that the meeste mai unchanged? This question must be manually calculated showing all workings Question 6 (25 marks Case study 2 - Mortgages Mr. and Mrs. Cavern and their three children live in their home 25 Selvac Ave, on which they have a mortgage balance of 2.500,000. This property has been appraised as $8,500,000 and is now up for sale at its current market value. A purchaser has been identified but the proceeds from the sale is not due to be paid to the Cavem March 31, 2021 In the meantime the Caverns have contracted to purchase a sex home a Lookout Glade for $25,000,000. although this property is valued at only $23.000.000. The sale agreement on this property requires a deposit of 20% on signing which will take place on December 15, 2020. with the balance which will not be covered by a mong payable in 30 days after signing Based on their high salaries, North Caribbean Dolding Society have pre-approved the Cavems for a 25-year mortgage of 75% of purchase price or valor whichever is less up to a maximum of $20,000,000. This will attract an interest te of 55% per annum with monthly compounding and will be disbursed on February 1, 2021 JNNB Lad, a commercial bank, is offering a bridging Soon of up to $17,000,000 for 120 days at an interest rate of 8.50% per annum and the Cavems will only use the minimum amount needed of this lo A closing cost of $1.250,000, which must be paid en spring of the sale agreement will be associated with purhase of the new home The Caverns also have swings of S 2.250,000 which will be available for me in their new home transactions Final payment for the new property, possession of both properties and dishursement of the bridging loan will take place on January 31, 2001 The Cavernes also have a bond with a face value of $12,000,000 he will mature on September 29, 2030 How much cash must the Covers pay en siguing the sale cement for their new home? 2 Marks) How much of the purchase price will be financed by the longumongape? (2Marks) How much should they pay on the second deposit? 2 C. Marks) e. 1 How much equity does the Caverns have in their old house? Marks) When the Caveras move in, what will be their equity in the property, assuming that the value of the new home remains at its current valution? (Emarks) How much should they borrow if they take a biglan? (bearing in mind that they will only use the minimum needed) Marks) How much Interest will they pay on the bridge loan for the period February 1 to April 30, 20217 (2 Marks Lise Excel to construct a full amortisation table showing the balance of the loan at maturity (4 Marks) I. In the event that the Caverns decide to use proceeds from the bond immediately it matures to pay off their mortgage will they have sufficient funds to do so? How much interest will they have paid over the period? This qotion must be manually calculated showing all workings. 4 Marks) 3. If the Caverns are planning to keep their new mong pumility, what would be the nail interest payable over the period, assuming that the meeste mai unchanged? This question must be manually calculated showing all workings