Cluse Date: Inu, UC 22, 2020 5:00 PM Question 5 of 5 The Summers want to buy an apartment in Coquitlam. Their combined gross annual salary is $78,000. They estimate that annual property taxes for a house in their desired neighborhood is $2,160, monthly strata fees are $150, and heating costs will be $40 per month. They are paying $350 a month for personal loans, and $250 a month for car loans. They would like to apply for a mortgage loan from ABC bank. ABC uses the following guidelines for mortgage applications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should on to mortoage navments nronerty taves heating costs and 50% of SAVE PROGRESS SUBMITAS Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 , following guidelines for mortgage applications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage payments, property taxes, heating costs and 50% of strata fees. Total Debt Service (TDS) Ratio: No more than 42% of gross household annual income should go to all debt payments: house, credit cards, personal loans, and car loans. SAVE PROGRESS SUBMIT ASSIGNM (9) ENG Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 a. Based on the GDS ratio rule, what monthly mortgage payment can the Summers afford? $0 Round to the nearest dollar b. Based on the TDS ratio rule, what monthly mortgage payment can the Summers afford? SAVE PROGRESS SUBMIT ASSIGNMENT ^ 1 ENG 3:12 PM 2020-10- Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 DU Round to the nearest dollar c. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the mortgage was amortized over 25 years. (Assume monthly payments) $0.00 Round to the nearest cent h SAVE PROGRESS SUBMIT ASSIGNMENT ^ ) ENG 3:13 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 The Summers purchased an apartment for $360,000 for a condo in Coquitlam. They made a down payment of 20% (20% is the minimum down payment needed so you don't have to buy mortgage default insurance) and took out a mortgage for the balance, amortized over 25 years at j2 = 3.75% for a 5-year term. d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 E SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:13 PM 2020-10 ji WI Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 Round up to the next dollar o payments Round up to the next payment SAVE PROGRESS SUBMIT ASSIGNMENT B 40) ENG 3:13 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 e. How much of the 1st payment is interest and how much is principal? 60th payment? (The bank uses penny-rounding each period) Interest portion of the 1st payment: $0.00 Principal portion of 1st payment: $0.00 Interest portion of the 60th payment: $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT 4ENG 3:13 PM 2020-10-19 TGC Syamjeeth Baskaran Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 $0.00 Principal portion of 1st payment: Interest portion of the 60th payment: $0.00 Principal portion of 60th payment: $0.00 Round to the nearest cent f. By how much was the balance owing reduced after making 5 years of payments? SAVE PROGRESS SUBMIT ASSIGNMENT 3:13 PM 2020-10-19 O 9m 1)) ENG Syamjeeti baskal dll Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 f. By how much was the balance owing reduced after making 5 years of payments? $0.00 Round to the nearest cent g. How much interest did they pay in the first 5 years? $0.00 As SAVE PROGRESS SUBMIT ASSIGNMENT ) ENG 3:14 PM 2020-10-19 e Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 h. What was the balance after the first 5 years? -) $0.00 Round to the nearest cent :) ) i. What percentage of the original mortgage did they pay off in the first 5 years? 0.00% Round to two decimal places if necessary SAVE PROGRESS SUBMIT ASSIGNMENT (0) ENG 3:14 PM 2020-10-19 c Lesson 16 & 17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Questions Question 1 (3) Question 5 of 5 Question 2 (5) i. What percentage of the original mortgage did they pay off in the first 5 years? Question 3 (4) Question 4 (3) 0.00 % Question 5 (7) Round to two decimal places if necessary j. How much of the 24th payment is interest? $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT TOT ) ENG 3:14 PM 2020-10-19 Lesson 16 & 17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM s 1 (3) Question 5 of 5 2 (5) k. How much interest did they pay in the first 2 years? 3 (4) $0.00 4 (3) Round to the nearest cent 15 (7) 1. How much interest did they pay in the 2nd year? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNMENT 2 10) ENG 3:14 PM 2020-10-19 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM ons Question 5 of 5 on 1 (3) on 2 (5) on 3 (4) m. In 5 years, when they renew their mortgage, the rate drops to j2 = 3.19%. They make a lump sum payment of $10,000 and amortize the balance over 20 years. Calculate the size of their monthly payment. (Recall: The bank rounds the payment up to the next dollar) on 4 (3) on 5 (7) $0 Round up to the next dollar SAVE PROGRESS SUBMIT ASSIGNMENT D 4) ENG 3:14 PM 2020-10-19 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM (3) Question 5 of 5 (5) n. What is the size of the final payment assuming the same interest rate over the 20 years? (4) (3) $0.00 (7) Round to the nearest cent o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) N SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:14 PM 2020-10-19 Syamjeeth Baskaran Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM tions tion 1 (3) Question 5 of 5 tion 2 (5) $0.00 Round to the nearest cent tion 3 (4) tion 4 (3) o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) tion 5 (7) $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:15 PM 2020-10-19 Cluse Date: Inu, UC 22, 2020 5:00 PM Question 5 of 5 The Summers want to buy an apartment in Coquitlam. Their combined gross annual salary is $78,000. They estimate that annual property taxes for a house in their desired neighborhood is $2,160, monthly strata fees are $150, and heating costs will be $40 per month. They are paying $350 a month for personal loans, and $250 a month for car loans. They would like to apply for a mortgage loan from ABC bank. ABC uses the following guidelines for mortgage applications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should on to mortoage navments nronerty taves heating costs and 50% of SAVE PROGRESS SUBMITAS Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 , following guidelines for mortgage applications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage payments, property taxes, heating costs and 50% of strata fees. Total Debt Service (TDS) Ratio: No more than 42% of gross household annual income should go to all debt payments: house, credit cards, personal loans, and car loans. SAVE PROGRESS SUBMIT ASSIGNM (9) ENG Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 a. Based on the GDS ratio rule, what monthly mortgage payment can the Summers afford? $0 Round to the nearest dollar b. Based on the TDS ratio rule, what monthly mortgage payment can the Summers afford? SAVE PROGRESS SUBMIT ASSIGNMENT ^ 1 ENG 3:12 PM 2020-10- Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 DU Round to the nearest dollar c. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the mortgage was amortized over 25 years. (Assume monthly payments) $0.00 Round to the nearest cent h SAVE PROGRESS SUBMIT ASSIGNMENT ^ ) ENG 3:13 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 The Summers purchased an apartment for $360,000 for a condo in Coquitlam. They made a down payment of 20% (20% is the minimum down payment needed so you don't have to buy mortgage default insurance) and took out a mortgage for the balance, amortized over 25 years at j2 = 3.75% for a 5-year term. d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 E SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:13 PM 2020-10 ji WI Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 Round up to the next dollar o payments Round up to the next payment SAVE PROGRESS SUBMIT ASSIGNMENT B 40) ENG 3:13 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 e. How much of the 1st payment is interest and how much is principal? 60th payment? (The bank uses penny-rounding each period) Interest portion of the 1st payment: $0.00 Principal portion of 1st payment: $0.00 Interest portion of the 60th payment: $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT 4ENG 3:13 PM 2020-10-19 TGC Syamjeeth Baskaran Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 $0.00 Principal portion of 1st payment: Interest portion of the 60th payment: $0.00 Principal portion of 60th payment: $0.00 Round to the nearest cent f. By how much was the balance owing reduced after making 5 years of payments? SAVE PROGRESS SUBMIT ASSIGNMENT 3:13 PM 2020-10-19 O 9m 1)) ENG Syamjeeti baskal dll Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 f. By how much was the balance owing reduced after making 5 years of payments? $0.00 Round to the nearest cent g. How much interest did they pay in the first 5 years? $0.00 As SAVE PROGRESS SUBMIT ASSIGNMENT ) ENG 3:14 PM 2020-10-19 e Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 h. What was the balance after the first 5 years? -) $0.00 Round to the nearest cent :) ) i. What percentage of the original mortgage did they pay off in the first 5 years? 0.00% Round to two decimal places if necessary SAVE PROGRESS SUBMIT ASSIGNMENT (0) ENG 3:14 PM 2020-10-19 c Lesson 16 & 17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Questions Question 1 (3) Question 5 of 5 Question 2 (5) i. What percentage of the original mortgage did they pay off in the first 5 years? Question 3 (4) Question 4 (3) 0.00 % Question 5 (7) Round to two decimal places if necessary j. How much of the 24th payment is interest? $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT TOT ) ENG 3:14 PM 2020-10-19 Lesson 16 & 17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM s 1 (3) Question 5 of 5 2 (5) k. How much interest did they pay in the first 2 years? 3 (4) $0.00 4 (3) Round to the nearest cent 15 (7) 1. How much interest did they pay in the 2nd year? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNMENT 2 10) ENG 3:14 PM 2020-10-19 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM ons Question 5 of 5 on 1 (3) on 2 (5) on 3 (4) m. In 5 years, when they renew their mortgage, the rate drops to j2 = 3.19%. They make a lump sum payment of $10,000 and amortize the balance over 20 years. Calculate the size of their monthly payment. (Recall: The bank rounds the payment up to the next dollar) on 4 (3) on 5 (7) $0 Round up to the next dollar SAVE PROGRESS SUBMIT ASSIGNMENT D 4) ENG 3:14 PM 2020-10-19 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM (3) Question 5 of 5 (5) n. What is the size of the final payment assuming the same interest rate over the 20 years? (4) (3) $0.00 (7) Round to the nearest cent o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) N SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:14 PM 2020-10-19 Syamjeeth Baskaran Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM tions tion 1 (3) Question 5 of 5 tion 2 (5) $0.00 Round to the nearest cent tion 3 (4) tion 4 (3) o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) tion 5 (7) $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 3:15 PM 2020-10-19