For the company’s office and equipment base in Winnipeg, the company holds a 20-year mortgage of $360 000 at 4% compounded semi-annually. The current mortgage contract has a term of 3 years and monthly payments. After the first term is completed, renewal of the mortgage includes monthly payments and interest at 4.8% compounded semi-annually for a term of 5 years.
a. Calculate the monthly payment in the first term.
b. Calculate the balance owing at the end of the first 12 months.
c. Calculate the interest paid in the first 12 months.
d. Calculate the outstanding balance at the end of the 3-year term.
e. Calculate the new payment.