Question: Thuan has a variable rate mortgage for $ 9 5 5 , 9 5 5 . 0 0 . The term of the mortgage is

Thuan has a variable rate mortgage for $955,955.00. The term of the mortgage is 5 years, and the amortization period is 25 years. Thuan will make bi- weekly payments and the mortgage rate is (365)=4.250%.
a) How much are the bi-weekly payments? $ 2389.75
b) What is the outstanding balance at the end of 4 years? $ 862404.77
c) After 4 years, the interest rate changes to 3.250%, but the payment amount stays the same. What is the outstanding balance at the end of the term of the mortgage? $ 827776.8
d) What is the trigger rate for the mortgage (after 4 years)? Give the nominal rate compounded daily. (Remember, write 3.456 not 0.03456.) $
7.496

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