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

Lisa saved $750 000.00. If she withdraws $12 000.00 at the beginning of every month and interest is 12% compounded monthly, what is the size of the last withdrawal?

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 contractor's price for a new building was $85 100.00. Stampede Inc., the buyers of the building, paid $14 000.00 down and financed the balance by making equal payments at the end of every six months for 14 years. Interest is 12% compounded semi-annually. a) What is the size of the semi-annual payment? b) How much will Stampede Inc. owe after 6 years? c) What is the total cost of the building for Stampede Inc.? d) What is the total interest included in the payments?

A debt of $42 500.00 is repaid by payments of $4850.00 made at the end of each year. Interest is 7% compounded semi-annually. a) How many payments are needed to repay the debt? b) What is the cost of the debt for the first three years? c) What is the principal repaid in the 3rd year? d) Construct an amortization schedule showing details of the first three payments, the last three payments, and totals.

What is the outstanding balance after 23 payments on a 20-year mortgage that has monthly payments of $1062.32 and an interest rate of 6.6% compounded monthly?

Zam Zam Inc. borrowed $142 000.00 at 4.4% compounded semi-annually. The loan is repaid by payments of $9700.00 due at the end of every six months. How many payments are needed and what will be the outstanding balance after 8 payments?

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.

The owner of the Guelph Inc. borrowed $20 000.00 at 1.2% compounded semi-annually and agreed to repay the loan by making payments of $1000.00 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?

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.

Amanda borrowed $57 800 from BMO to buy a 2014 E-Class Mercedes Sedan at 3.9% compounded monthly. Payments of $2056 are required at the end of every month. Construct a complete amortization schedule in MS Excel showing the details of all payments and the total.

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.