Question
You are in the market for a home. You and your partner have saved up $130,000 for a down payment and would like to buy
You are in the market for a home. You and your partner have saved up $130,000 for a down payment and would like to buy a home in Delta. You meet with National Bank Financial (NBF) and they offer you a $655,000, 25-year mortgage. Monthly payments under this mortgage will be $3,871.54 and at the beginning of the month.
- What nominal interest rate, compounded quarterly, does the bank charge you?
- For your 50th payment, what is the principal repayment portion of this payment?
- Suppose you win the lottery in exactly 12 years after you open your mortgage with NBF. You would like to pay back the mortgage loan in a lump-sum payment. How much will you need to repay in 12 years' time, assuming there are no penalty fees?
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fe RATEE2E3E4E5 A D F H 1 Nper Number of months of mortgage2512 300 Pmt Payment per month 387154 4 P...
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Exploring Engineering An Introduction to Engineering and Design
Authors: Philip Kosky, George Wise, Robert Balmer, William Keat
2nd edition
123747235, 123747236, 978-0123747235
