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Hi! Please kindly answer my question correct in 1 hour. Please answer all and I will give you like!! QUESTION 1 (24 marks) (a) Mobius
Hi! Please kindly answer my question correct in 1 hour. Please answer all and I will give you like!!
QUESTION 1 (24 marks) (a) Mobius decides to buy an apartment that costs $9,000,000. He can afford to make a 40% down payment and the rest will be financed by a 20-year (monthly) mortgage. The interest charged by the bank on the loan is 6%, compounded monthly. (i) Calculate the size of Mobius' month-end mortgage payment? (4 marks) (5 marks) (ii) What is the outstanding loan balance after the 80th loan repayment? (iii) What is the size of the interest payment in the 81st loan repayment? (2 marks) (iv) What is the size of the principal repaid in the 81st loan repayment? (2 marks) (b) Lora is trying to decide which of the following two deposit accounts in Bank A she should put her money in. Lora's only concern is the rate of return. Account (X): 3% every three months Account (Y): 6% every six months (i) Calculate the effective monthly rate for both accounts. Round your percentage answer to four decimal places. (4 marks) (ii) Which account will provide the higher monthly return? (1 mark) (iii) If Lora is going to put $200,000 into Bank A at the beginning of each of the next six months, how much at most will she have one year from now? (6 marks)
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