BMAT $230$ Lisa's Mortgage Repayment Option $1$

Questions:

Lisa's mortgage is up for renewal. There is currently $15$ years and $6$ months remaining on her $$271,500$ mortgage. Interest on the mortgage is $4\mathrm{.}79\%$ compounded semi$-$annually and the mortgage is renewable after five years.

a$.$ What is the size of each monthly payment?

b$.$ Prepare an amortization schedule for the first five$-$year term. Make sure your payment is rounded to the nearest cent. Express totals at the bottom of each column as currency.

c$.$ What is the cost of the debt for the first five$-$year term?

d$.$ If the mortgage is renewed for a further five years at $6\mathrm{.}35\%$ compounded semi$-$annually, what will be the size of the monthly payment?

Lisa would like to repay her mortgage more quickly by increasing her monthly payment.

a$.$ If Lisa increases her payment by rounding it to the next $$250,$ how many payments will be required. to repay the loan? Use the roundup function to calculate the new payment.

To round up to a specific amount $($like the $$250$ here$)$ one option is to use the ROUNDUP function. I typically specify the rounding amount and call it the "bundle". Then use ROUNDUP$($payment amount$/$bundle$,0)*$bundle$.$ The, $0$ means no decimals.

By using this function, you can round your payments to any bundle amount: $$100,$$$250,$$$50.$

b$.$ What is the term of the loan in years and months? By how many months is the amortization period shortened?

c$.$ Prepare an amortization schedule for the first five$-$year term. Make sure your payment is rounded to the nearest cent. Express totals at the bottom of each column as currency.

d$.$ What is the total cost of financing the debt for this five$-$year term?

e$.$ How much interest can Lisa save in the first five years if she rounds her payment up to the next $$250$ instead of making the original payment?

$*$Please answer with complete solution and answers and not procedures, thanks