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Assume that your group represents the Credit Manager of a North Vancouver Credit Union and that Mr. Wayne Gretski, on his way through Vancouver to

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Assume that your group represents the Credit Manager of a North Vancouver Credit Union and that Mr. Wayne Gretski, on his way through Vancouver to the 2022 Olympics, has asked that you analyze the history of his previous and current mortgage transactions. Exactly 10 years ago, Mr. Wayne Gretski purchased a beautiful condo at Whistler for $760,000 and made a down payment of $295,000. The balance was mortgaged at the Canada Bank at 4.30% compounded semi-annually with monthly payments over 25 years. The interest rate was fixed for a 5 year term, and lump sum payments were allowed at the end of each 5 years without penalty. i) ii) iii) iv) Calculate the monthly payment for the first 5 years. ROUND UP TO THE NEXT CENT. Construct an amortization schedule for the first 60 months. (A schedule showing only the first 3 months, and months 57 to 60 inclusive, with 60 month totals is also required.) Calculate the principal outstanding at the end of the first 5 years. What percentage of the first five years total monthly payments went to reduction of the debt, and what percentage went to interest? What percentage of the debt has been paid off by the first five years of payments? Exactly five years ago, Wayne made a lump-sum payment of $115,000 in addition to the regular payment), and the interest rate was also changed to 4.75% compounded semi-annually. i) ii) Calculate the amount being refinanced. Calculate the monthly payment for the second 5 year period. ROUND UP TO THE NEXT DOLLAR How much total interest did Wayne pay in the past two years? iii) Wayne's mortgage has just come up for further renewal. He has decided to take advantage of your relatively low rates and wishes to investigate tranferring it to your North Vancouver Credit Union branch that charges 5.25% compounded monthly, payable over 15 years. ii) iii) Calculate the size of the principal balance being refinanced. Calculate the size of the new monthly payment. Wayne seems amazed that he has only repaid a small fraction of his original loan. You will draw a large scale, fully labelled graph that visually explains to Wayne how the loan has been amortized over the past ten (10) years. You are only expected to plot the annual balances owing

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