A $270,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 25 year mortgage was taken for the balance. The negotiated fixed interest rate was 3.75% compounded semi-annually for a five-year term, with repayments made at the end of every month. a. Calculate the size of the monthly payments. b. Complete the partial mortgage schedule for the five-year term, rounding the answers to the nearest cent. (see attach image for a clearer view)
A $270,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 25 year mortgage was taken for the balance. The negotiated fixed interest rate was 3.75% compounded semi-annually for a five-year term, with repayments made at the end of every month. a. Calculate the size of the monthly payments. b. Complete the partial mortgage schedule for the five-year term, rounding the answers to the nearest cent. (see attach image for a clearer view)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
OLA#9.3:
A $270,000 house in Hamilton was purchased with a down payment of 20.00% of its value and a 25 year mortgage was taken for the balance. The negotiated fixed interest rate was 3.75% compounded semi-annually for a five-year term, with repayments made at the end of every month.
a. Calculate the size of the monthly payments.
b. Complete the partial mortgage schedule for the five-year term, rounding the answers to the nearest cent. (see attach image for a clearer view)
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Interest Portion
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Principal Portion
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Principal Balance
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Transcribed Image Text:b. Complete the partial mortgage schedule for the five-year term, rounding the
answers to the nearest cent.
Payment
Рayment
Interest
Principal
Principal
Number
Portion
Portion
Balance
$216,000.00
2
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