You have bought a home that has a $750,000 mortgage and you have decided to use...

 

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You have bought a home that has a $750,000 mortgage and you have decided to use the variable closed rate of 2.65 percent that your bank has available. The rate can adjust on a quarterly basis based on market changes. a) What is the payment if you amortize the mortgage over 25 years? (3 marks) b) Build an amortization table for the first 6 payments (3 marks) c) Assume 6 months later the variable rate goes up to 3.15 percent as inflation has picked up. What is your monthly payment now? Update the amortization table to show changes in interest paid in the 70 payment (4 marks) You have bought a home that has a $750,000 mortgage and you have decided to use the variable closed rate of 2.65 percent that your bank has available. The rate can adjust on a quarterly basis based on market changes. a) What is the payment if you amortize the mortgage over 25 years? (3 marks) b) Build an amortization table for the first 6 payments (3 marks) c) Assume 6 months later the variable rate goes up to 3.15 percent as inflation has picked up. What is your monthly payment now? Update the amortization table to show changes in interest paid in the 70 payment (4 marks)

Answer rating: 100% (QA)

a Loan amount PV 750000 Number of months n 25 x 12 300 Monthly rate r 265 12 02208 Mo... View the full answer