Rathee has been apartment shopping in Alaska. She has found  an apartment she likes that is valued at $500,000. Based on her salary, she feels she can make monthly payments of $3,250 on a mortgage. The advisor at her bank is offering to extend a mortgage loan at an interest rate of 4.5% per annum, compounded semi-annually, with a term and amortization period of 15 years.


1.     What is the cash down payment Leslie will have to make on the apartment (rounded to the nearest dollar), if she pays the appraised value? Show Work.


2.     Calculate the annual mortgage constant for this loan. Round the loan amount to the nearest dollar. Show Work.

Answer rating: 100% (QA)

Rathee is interested to shop a apartment in Alaska Apartment Value is 500000 Bank offered interest R... View the full answer