ASSIGNMENT #2 MA10078 LOANS & MORTGAGES (1) LUMP SUM PAYMENT. $200,000 mortgage with a 5 year term at 6% compounded semi-annually is amortized for 25 years with monthly payments. The client can put 20% of the original mortgage down without penalty once/year. At the end of the 2nd year he paid a lump sum amount. (a) What was the lump sum payment? (b) How much will the mortgage be shortened? Answer in years & months. (2) A $100,000 mortgage with monthly payments is amortized for 25 years. At the end of 5 years they increased their monthly payments by 20%. Interest is 7.5% compounded semi-annually. How much will the mortgage be shortened? (3) A $500,000 mortgage is amortized for 25 years with monthly payments. Interest is 4% compounded semi-annually. Round the monthly payments UP TO THE NEAREST $100. How much will the amortization be shortened? And what is the final payment?
ASSIGNMENT #2 MA10078 LOANS & MORTGAGES (1) LUMP SUM PAYMENT. $200,000 mortgage with a 5 year term at 6% compounded semi-annually is amortized for 25 years with monthly payments. The client can put 20% of the original mortgage down without penalty once/year. At the end of the 2nd year he paid a lump sum amount. (a) What was the lump sum payment? (b) How much will the mortgage be shortened? Answer in years & months. (2) A $100,000 mortgage with monthly payments is amortized for 25 years. At the end of 5 years they increased their monthly payments by 20%. Interest is 7.5% compounded semi-annually. How much will the mortgage be shortened? (3) A $500,000 mortgage is amortized for 25 years with monthly payments. Interest is 4% compounded semi-annually. Round the monthly payments UP TO THE NEAREST $100. How much will the amortization be shortened? And what is the final payment? (4) A $40,000 loan has monthly payments of $300 at 5% compounded semi-annually. Find the final payment. How much interest was paid? (5) A $250,000 mortgage is amortized for 30 years with monthly payments. Interest is 4.5% compounded semi-annually. At the end of the 4th year you paid $40,000 down. How much is the mortgage shortened? (6) A $15,000 loan is to be repaid in 7 years with monthly payments. Interest is 6% compounded monthly. Round the payment up to the nearest $100 and determine how much sooner the loan will be repaid. (7) A $900,000 mortgage is amortized for 25 years with monthly payments. Interest is 4.8% compounded monthly. Construct a partial amortization schedule showing the first 2 payments, payment 200 and the last payment.
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