1. Determine the monthly payment for each mortgage. The interest is compounded monthly. 2. 3. a. Mortgage amount Amortization period Interest rate $185 000 25 years 30 years 6.25% b. $220 000 5.75% Determine the total interest paid for each of questions in question 1. Ashlee purchased a house for $875 000. She made a down payment of 15% of the purchase price and took out a mortgage for the rest. The mortgage has an interest rate of 6.95% compounded monthly, and amortization period of 20 years, and a 5 year term. Calculate Ashley's monthly payment. 4. 5. 9 Key Question #3 (continued) The Vaughan's have a mortgage of $725 000 amortized over 25 years at 4.25% compounded monthly. After the original 4 year term, the mortgage is renewed at 4.0% compounded monthly. Calculate the new monthly payment. A bank charges 7.75% compounded monthly on a mortgage. The Markins have an excellent credit rating. They negotiated a rate of 7% compounded monthly on a mortgage on $230 000 amortized over 25 years. By how much did the Markins reduce their monthly payment by negotiating the lower rate of interest? 19