Five years ago, the Macdonals were looking at buying a new house in Surrey. (a) Their bank used the 32% tule: no more than 32% of their gross monthly income can go towards paying their mortgage, property taxes and utility costs. If their gross monthly income was $12,500. property taxes were $3,600 per year and utility costs $125 per month, what is the maximum monthly mortgage payment they could afford? (b) The Macdonalds ended up purchasing a house for $830,000. They made a 20% down payment and amortized the balance over 25 years. The interest rate was 3.8% compounded semi-annually, for a five-year term. Find the size of their monthly payment. The bank rounds the payment up to the next dollar (c) How much of the 60th payment was interest? (d) How much did they still owe after making five years of payments? (e) Today, the interest rate has risen to j2 - 4.8%. To help pay the higher payment, the Macdonals decide to increase their mortgage and use the money to build a rental suite in their basement. With this rental income, they feel that they can comfortably afford a mortgage payment of $4,000 per month. By increasing their mortgage, how much money would they receive to pay for the renovation if they still want to pay off the mortgage in 20 years (a) Their bank used the 32% rule: no more than 32% of their gross monthly income can go towards paying their mortgage, property taxes and utility costs. If their gross monthly income was $12,500. property taxes were $3,600 per year and utility costs $125 per month, what is the maximum monthly mortgage payment they could afford? (b) The Macdonalds ended up purchasing a house for $830,000. They made a 20% down payment and amortized the balance over 25 years. The interest rate was 3.8% compounded semi-annually, for a five-year term Find the size of their monthly payment. The bank rounds the payment up to the next dollar (c) How much of the 60th payment was interest? (d) How much did they still owe after making five years of payments? (e) Today, the interest rate has risen to j2 = 4.8%. To help pay the higher payment, the Macdonals decide to increase their mortgage and use the money to build a rental suite in their basement. With this rental income, they feel that they can comfortably afford a mortgage payment of 54.000 per month By increasing their mortgage, how much money would they receive to pay for the renovation if they still want to pay off the mortgage in 20 years Next Page Page 14 of 20 Five years ago, the Macdonals were looking at buying a new house in Surrey. (a) Their bank used the 32% tule: no more than 32% of their gross monthly income can go towards paying their mortgage, property taxes and utility costs. If their gross monthly income was $12,500. property taxes were $3,600 per year and utility costs $125 per month, what is the maximum monthly mortgage payment they could afford? (b) The Macdonalds ended up purchasing a house for $830,000. They made a 20% down payment and amortized the balance over 25 years. The interest rate was 3.8% compounded semi-annually, for a five-year term. Find the size of their monthly payment. The bank rounds the payment up to the next dollar (c) How much of the 60th payment was interest? (d) How much did they still owe after making five years of payments? (e) Today, the interest rate has risen to j2 - 4.8%. To help pay the higher payment, the Macdonals decide to increase their mortgage and use the money to build a rental suite in their basement. With this rental income, they feel that they can comfortably afford a mortgage payment of $4,000 per month. By increasing their mortgage, how much money would they receive to pay for the renovation if they still want to pay off the mortgage in 20 years (a) Their bank used the 32% rule: no more than 32% of their gross monthly income can go towards paying their mortgage, property taxes and utility costs. If their gross monthly income was $12,500. property taxes were $3,600 per year and utility costs $125 per month, what is the maximum monthly mortgage payment they could afford? (b) The Macdonalds ended up purchasing a house for $830,000. They made a 20% down payment and amortized the balance over 25 years. The interest rate was 3.8% compounded semi-annually, for a five-year term Find the size of their monthly payment. The bank rounds the payment up to the next dollar (c) How much of the 60th payment was interest? (d) How much did they still owe after making five years of payments? (e) Today, the interest rate has risen to j2 = 4.8%. To help pay the higher payment, the Macdonals decide to increase their mortgage and use the money to build a rental suite in their basement. With this rental income, they feel that they can comfortably afford a mortgage payment of 54.000 per month By increasing their mortgage, how much money would they receive to pay for the renovation if they still want to pay off the mortgage in 20 years Next Page Page 14 of 20