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

The Korean community is planning to buy a place for their community in Markham valued at $1 697 000. They made a down payment of 10% and payments of $400 000 are required at the end of every 3 months. If interest is 9% compounded monthly, what is the size of the final payment?

Keith receives payments of $14 500.00 at the beginning of each month from a pension fund of $1 500 000.00. Interest earned by the fund is 7.6% compounded monthly. What is the number of payments Keith will receive?

John makes a monthly mortgage payment of $1940 at the end of every month. On October 31, his loan balance was $145 000 after making a payment of $1940. His financial institute allows him to make one additional payment equal to or less than his monthly payment, once a month. Taking advantage of that, John made a payment of $1500 on November 15 and $1900 on December 20. What is his year-end balance after making monthly payment on December 31? The effective monthly fixed rate is 0.306%.

Tom receives pension payments of $6000.00 at the end of every six months from a retirement fund of $90 000.00. The fund earns 8.00% compounded semi-annually. a) How many payments will Tom receive? b) What is the size of the final pension payment?

Mr. Lamb borrowed $8321.00 at 11.12% compounded monthly. He agreed to repay the loan in equal monthly payments over five years. a) What is the size of the monthly payment? b) How much of the 24th payment is interest? c) What is the principal repaid in the 37th payment? d) Prepare a partial amortization schedule showing details of the first three payments, the last three payments, and totals.

Payments of $1000.00 deferred for nine years are received at the end of each month from a fund of $20 000.00 deposited today at 6% compounded monthly. Calculate the size of the final payment.

A loan of $14 100.00 is amortized over 11 years by equal monthly payments at 5.4% compounded monthly. Construct an amortization schedule showing details of the first three payments, the fortieth payment, the last three payments, and totals.

A mortgage balance of $137 960.70 is to be repaid over a 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.

A investor's price for a townhouse was $160 000.00. Sepaba Investments., the buyers of the rental unit, paid $40 000.00 down and financed the balance by making equal payments at the end of every six months for 25 years. Interest is 6% compounded semi-annually. a) What is the size of the semi-annual payment? b) How much will Sepaba Investments. owe after 20 years? c) What is the total cost of the building for Sepaba Investments? d) What is the total interest included in the payments?

How much interest is paid after the first payment interval on a $100 000 mortgage? The mortgage is amortized over 25 years and the payments are monthly. The interest rate is 6% compounded semi-annually. Round your answer to the nearest dollar.

Sean and friends bought a property valued at $50 000 for $5000.00 down and a mortgage amortized over 10 years. The group makes equal payments due at the end of every three months. Interest on the mortgage is 6.00% compounded annually and the mortgage is renewable after five years. a) What is the size of each quarterly payment? b) What is the outstanding principal at the end of the five-year term? c) What is the cost of the mortgage for the first five years? d) If the mortgage is renewed for a further five years at 9% compounded semi-annually, what will be the size of each quarterly payment?

A debt of $12 970.00 with interest at 7.23% compounded semi-annually is repaid by payments of $1880.00 made at the end of every three months. Construct an amortization schedule showing the total paid and the total cost of the debt.

A debt of $41 000.00 is repaid in monthly installments of $660.00. If interest is 8.4% compounded quarterly, what is the size of the final payment?

What is the monthly payment size of a 21-year mortgage for $169 600 and an interest rate of 7.2% compounded semi-annually?

How much interest is paid in the 53rd monthly payment interval of a loan for $43 200? The loan is amortized at a rate of 9.17% compounded annually over 7 years.

Shiva transferred his mortgage of $145 981 from CIBC to BMO for the remaining amortization period at 3.59% compounded semi-annually. He has agreed to pay rounded up payment of $2000 every month. How long will it take Shiva to pay-off his mortgage?

Andre has saved $152 000.00. If he withdraws $1750.00 at the beginning of every month and interest is 7.5% compounded monthly, what is the size of the last withdrawal?

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?

The owner of the Pink Flamingo Motel borrowed $19 500.00 at 8.11% compounded semi-annually and agreed to repay the loan by making payments of $1110.00 at the end of every three months. a) How many payments will be needed to repay the loan? b) How much will be owed at the end of five years? c) How much of the payments made at the end of five years will be interest?

A debt of $40 000.00 is repaid in monthly installments of $500.00. If interest is 8.0% compounded quarterly, what is the size of the final payment?