Exam 14: Amortization of Loans, Residential Mortgages, and Sinking Funds

How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for $4887 at an interest rate of 7.4% compounded monthly and the payments are also monthly. Round your answer to the nearest dollar.

A debt of $43 100.00 is repaid by payments of $3350.00 made at the end of every six months. Interest is 8.4% compounded quarterly. a)What is the number of payments needed to retire the debt? b)What is the cost of the debt for the first five years? c)What is the interest paid in the 11th payment? d)Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

What is the monthly payment size of a 25-year mortgage for $100 000 and an interest rate of 6% compounded semi-annually?

Li bought a house in Whitby for $305 000 5 years ago. He financed the house through Scotia Bank with a mortgage of $259 000 amortized over 25 years. Interest for the first 5 years was 4.4% compounded semi-annually and payments were made monthly. At the end of the 5 year term, Li has renewed the mortgage for another 5 years, at 3.7% compounded semi-annually. What is the monthly payment for the second term?

John has agreed to purchase his partner's share in real estate by making payments of $5000.00 every three months. The agreed transfer value is $40 000.00 and interest is 10% compounded annually. If the first payment is due at the date of the agreement, what is the size of the final payment?

Peter worked for GM for 31 years. On his retirement, he opted a pension buy-out and received $1 467 921. He invested his money in an annuity that provided for payments of $9000 at the end of every month. If interest is 4.4% compounded monthly, determine the size of the final payment.

A bank has an interest rate of 5% compounded semi annually for a five year closed mortgage. If the mortgage has monthly payments, calculate the effective rate of interest per each term.

Far East Imports Inc. owes $64 000.00 to be repaid by monthly payments of $2475.00. Interest is 6.12% compounded monthly. a)How many payments will Far East Imports Inc. have to make? b)How much interest is included in the 15th payment? c)How much of the principal will be repaid by the 17th payment? d)Construct a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

Vicki receives payments of $3000.00 at the beginning of each month from a pension fund of $150 000.00. Interest earned by the fund is 6% compounded monthly. What is the number of payments Vicki will receive?

How much interest is paid in total on a 3-year loan for $28 600 (rounded to the nearest dollar)? The interest rate is 8.7% compounded monthly and the payments are monthly.

A debt of $17 000.00 is repaid by quarterly payments of $1430.00. If interest is 6.12% compounded quarterly, what is the size of the final payment?

Li bought a house in Whitby for $305 000 5 years ago. He financed the house through Scotia Bank with a mortgage of $259 000 amortized over 25 years. Interest for the first 5 years was 4.4% compounded semi-annually and payments were made monthly. At the end of the 5 year term, Li has renewed the mortgage for another 5 years, at 3.7% compounded semi-annually. What is the monthly payment for the second term?

Zara bought a 2013 Kia Forte by taking a $19 500 loan from BMO with interest at 5.99% compounded annually and amortized by payments of $378 at the end of every month. She receives an inheritance after making 36 payments and plans to pay the balance in full. What is the payout figure just after the last regular payment made?

A contract valued at $47 500.00 requires payments of $6951.00 every six months. The first payment is due in four years and interest is 6.6% compounded semi-annually. a)How many payments are required? b)What is the size of the last payment? c)How much will be paid in total? d)How much of what is paid is interest?

Kirk had accumulated $975 000 in his RRSP at the age of 55. He converted the RRSP into an RRIF at that time and started withdrawing $5000 at the beginning of each month. If interest is 4.5% compounded monthly, what is the size of his final withdrawal?

Peter worked for GM for 31 years. On his retirement, he opted for a pension buy-out and received $1 467 921. He invested his money in an annuity that provided for payments of $9000 at the end of every month. If interest is 4.4% compounded monthly, determine the size of the final payment.

Munawar is a first time buyer and bought a brand new townhouse in Oshawa for $212 000. He has saved enough to make a 5% down payment and will have to pay mortgage loan insurance at 2.75% of the mortgage balance. Munawar wants the insurance premium added to the maximum allowable loan balance. Determine his maximum initial mortgage balance.

A debt of $17 000.00 is repaid by quarterly payments of $1430.00. If interest is 6.12% compounded quarterly, what is the size of the final payment?

How much interest is paid in total on a 3-year loan for $28 600 (rounded to the nearest dollar)? The interest rate is 8.7% compounded monthly and the payments are monthly.

A mortgage balance of $137 960.70 is to be repaid over an eleven-year term by equal monthly payments at 8.1% compounded semi-annually. At the request of the mortgagor, the monthly payments were set at $1140.00. a)How many payments will the mortgagor have to make? b)What is the size of last payment? c)Determine the difference between the total actual amount paid and the total amount required to amortize the mortgage by the contractual monthly payments.