8. Mortgages: a. What is the period interest rate on a mortgage with a 4.8% APR compounded semiannually?

b. A certain family can afford a monthly mortgage payment of $1,340.00. With an APR of 5.25% per annum, what is the maximum mortgage amount they can afford if they prefer a 20-year amortization period? N = I% = PV = PMT = FV = P/Y = C/Y = PMT: END BEGIN

c. The Lees have purchased a new home for $360,000, and put a down payment of $50,000 on it. They have a mortgage for the balance, amortized over 20 years at 5.25%. If the Lees pay off the mortgage at the end of the 20 years, how much interest will they have paid in total?

d. A family has a mortgage on a home for $295,000, amortized over 25 years, at an APR of 4.5%. The monthly payment on the mortgage is $1,639.71/ If the family makes a $25,000 extra payment at the end of the 4th year of the mortgage, how much interest will they save by the end of the 25-year period of the mortgage? Hint: Assume the monthly payment is adjusted at the end of the 4th year, to keep the original amortization of 25 years. N = I% = PV = PMT = FV = P/Y = C/Y = PMT: END BEGIN N = I% = PV = PMT = FV = P/Y = C/Y = PMT: END BEGIN