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Problem 12. (8 pts, 4 each] A. The bank has determined that based on TSD ratio of 40% and other factors, the maximum monthly mortgage
Problem 12. (8 pts, 4 each] A. The bank has determined that based on TSD ratio of 40% and other factors, the maximum monthly mortgage payment that Jim Blue qualifies to make is $2,500. The five-year fixed rate of interest is 5% compounded semi-annually and the mortgage is to be amortized over 25 years. What is the maximum value of the mortgage that Jim Blue may obtain from the bank? (Show your calculations) B. Robert Dindo rents his apartment for $1,200 per month, utilities not included. When he moved in, he paid a $1,000 security deposit using money from his TFSA account that was achieving an annual rate of 8% per year. His tenant's insurance costs him $250 per year. What are Robert's total annual costs of renting? (Show your calculations)
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