Yvonne signs a $300,000 mortgage, 4-year term, monthly payments at 7% c.m. amortized over 25 years. Their employer subsidies her mortgage using a rate of 4% c.m. Find the monthly subsidy he receives.

a) Find regular payment amount for 7% c.m.

b) Find regular payment amount for 4% c.m.

c) Find subsidy amount.

A mortgage contains the following penalty clause, "Any prepaid principal shall be subject to a penalty equal to 3 times one month's interest on the prepaid principal. An additional payment of $35000 is made on a mortgage that has an interest rate of 7% c.s.a.

a, Determine the amount that is applied to reducing the principal.

Answer rating: 100% (QA)

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