Joanne just bought a condo to live in and the purchase price is $900,000. For this condo purchase, she used her savings to pay for the down payment of 30% of the purchase amount and received a mortgage for the remaining amount from her bank. The bank provided the mortgage at 2.10% APR semi-annual compounding at 5 years fixed rate term. The mortgage required Alicia to make equal monthly payment and she chose 30-year amortization and 5 years fixed rate term.

Using financial calculator or appropriate financial formula, please calculate the followings. Describe your calculation steps where applicable.

1. What is the monthly mortgage payment amount Joanne needs to pay? And how much total principal amount would be paid off in next 5 years?

2. Joanne thinks she can sell her condo after 5 years for $950,000. What is the total interest Amanda would have paid in next 5 years?

3. Given the current inflation at 3.6% (highest level in a decade), there is a possibility of the Bank of Canada increasing the interest rate in 2022 and beyond. If the interest rate were to increase, what could be the impact on Joanne's expectation of selling her condo for $950,000. Please explain.

(maximum 15 minutes)