Exam 14: Amortization of Loans,including Residential Mortgages

How much total principal is repaid between the 1^st and 7^th 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.

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%.

Rebecca borrowed $20 400 from her local credit union to pay for the upgrades in her kitchen.She wants to pay the loan with monthly payments over the period of 3 years.What is the interest included in the tenth payment,if the rate charged by the credit union is 6% monthly?

What is the outstanding balance after the 23^rd payment interval of a 16-year loan for $14 734 with semi-annual payments and an interest rate of 5.95% compounded quarterly?

What is the size of the final unequal payment of a loan for $2723.44 if it has quarterly payments of $500? The interest rate is 8.4% compounded quarterly.

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?

Rola Inc.borrowed $42 000.00 at 7% compounded semi-annually.The loan is repaid by payments of $4700.00 due at the end of every six months. a)How many payments are needed? b)How much of the principal will be repaid by the 6^th payment? c)Prepare a partial amortization schedule showing the details of the last three payments and totals.

Karen receives pension payments of $4570.00 at the end of every six months from a retirement fund of $82 000.00.The fund earns 8.06% compounded semi-annually. a)How many payments will Karen receive? b)What is the size of the final pension payment?

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?

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.

Cody borrowed $9100.00 from his credit union.He agreed to repay the loan by making equal monthly payments for 4 years.Interest is 9% compounded monthly. a)What is the size of the monthly payments? b)How much will the loan cost him? c)How much will Cody owe after 16 months? d)How much interest will he pay in his 26^th payment? e)How much of the principal will be repaid in the 18^th payment? f)Prepare a partial amortization schedule showing details of the first three payments,Payments 24,25,26,the last three payments,and totals.

Rebecca bought a house in Oshawa and took a $259 000 mortgage amortized by monthly payments over 25 years that is renewable after 5 years.If interest is 4.4% compounded semi-annually,what is the outstanding balance at the end of the five year term? If the mortgage is renewed for a further 5 year term at 3.7% compounded semi-annually,what is the balance after the second 5 year term?

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?

Catrina receives payments of $1120.00 at the beginning of each month from a pension fund of $79 500.00.Interest earned by the fund is 11.36% compounded monthly. a)What is the number of payments Catrina will receive? b)What is 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.

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?

A $180 000.00 mortgage is to be amortized by making monthly payments for 22.5 years.Interest is 7.2% compounded semi-annually for a four-year term. a)Compute the size of the monthly payment. b)Determine the balance at the end of the four-year term. c)If the mortgage is renewed for a five-year term at 8.66% compounded semi-annually,what is the size of the monthly payment for the renewal term?

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 11^th payment? d)Construct a partial amortization schedule showing details of the first three payments,the last three payments,and totals.

A demand (variable rate)mortgage of $137 000.00 is amortized over 20 years by equal monthly payments.After 21 months the original interest rate of 6% p.a was raised to 6.6% p.a.Three years after the mortgage was taken out,it was renewed at the request for the mortgagor for a five-year term at a fixed rate of 7.25% p.a. a)Calculate the mortgage balance after 21 months. b)Compute the size of the new monthly payment at the 6.6% rate of interest. c)Determine the mortgage balance at the end of the five-year term.

Angelina has agreed to purchase her partner's share in the business by making payments of $1720.00 every three months.The agreed transfer value is $19 500.00 and interest is 9.11% compounded annually.If the first payment is due at the date of the agreement,what is the size of the final payment?