Price of condo $525,000

80% of price financed $420,000

Annual rate 5.25%

Monthly rate 0.4375%

Years of mortgage 25

Months 300

Monthly payment = $2,516.84

5. Determine the net future gain or loss after 2, 5, and 10 years under the following scenarios:

A)The condo price remains unchanged;

B)The condo price drops 15% over the next 2 years, then increases back to its purchase price by the end of 5 years, then increases by a total of 15% from the original purchase price by the end of 10 years;

C)The condo price increases annually by the annual rate of inflation of 3.5 percent for the next 10 years;

D)The condo price increases annually by an annual rate of 6% over the next 10 years