12. Based on a $545,000 25-year fixed rate loan at 6.75%, what are the total repayments assuming the loan is fully amortized? a) $1,432,124.67 b) $1,129,640.34 c) $936,632.21 d) $1,584,444.48 12a. What are the total repayments on the loan in Question 12 if there is a balloon payment of $150,000 at maturity? a) 1,221,855.16 b) 1,349,481.97 c) 977,317.62 d) 1,267,497.63

Future Value: Present Value: Equivalent Annual Interest Rate: Present Value-Annuity: Present Value-Annuity: Fully Amortizing Loan Repayments: Partial Amortizing Loan Repayments: FVn=PV0(1+r)n PV0=(1+r)nFVn=FVn[(1+r)n1] EAIR=[1+mr]m1 PV=C[r1r(1+r)t1] PV=C[r1r(1+r)t1] PMT=P[1(1+i/12)1i/12] P(1+i/12)iFV PMT=[i/121i/12(1+i/12)t1](1+i/12 Partial Amortizing Loan Outstanding Balloon Payment: FV=P(1+i/12)PMT[i/12(1+i/12)t1] Definitions for mortgage formulas: PMT = monthly repayments, P= initial outstanding principal, FV= Balloon Balance, i= Nominal Annual Interest Rate, t= number of periods