Question 5 of 5 Sammesso un artment in Coquitlam. Their combined gross annual Siarg 5333.Cetinstrat annual property taxes for a house in their desired menores 5520 serata fees are $150, and heating costs will be $40 per month. The song 5350 5 month for personat loans and $250 a month for car loans. They woulce to for a mortgage loan from ABC bank ABC uses the following guidelines for moregage spotications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage naments sroneri taves heating costs and 50% of SUBMIT ASSIGN SAVE PROGRESS a) ENG Lesson 10 &12 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage payments, property taxes, heating costs and 50% of strata fees. Total Debt Service (TDS) Ratio: No more than 42% of gross household annual income should go to all debt payments: house, credit cards, personal loans, and car loans. a. Based on the GDS ratio rule, what monthly mortgage payment can the Summers afford? SAVE PROGRESS SUBMIT ASSIGNMENT G 1) ENG 2:33 2020-1 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 b. Based on the TDS ratio rule, what monthly mortgage payment can the Summers afford? $0 h Round to the nearest dollar C. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the SAVE PROGRESS SUBMIT ASSIGNMENT e o A mi ENG 2:34 PI 2020-10 Question 5 of 5 c. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the mortgage was amortized over 25 years. (Assume monthly payments) $0.00 Round to the nearest cent horn anno SAVE PROGRESS SUBMIT ASSIGNIKAER A 1)) ENG 2:34 2020 Question 5 of 5 The Summers purchased an apartment for $360,000 for a condo in Coquitlam. They made a down payment of 20% (20% is the minimum down payment needed so you don't have to buy mortgage default insurance) and took out a mortgage for the balance, amortized over 25 years at j2 = 3.75% for a 5-year term. d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. SAVE PROGRESS SUBMIT ASSIGNME A ENG 2 202 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 Round up to the next dollar o payments Round up to the next payment SAVE PROGRESS SUBMIT ASSIGNMENT 1) ENG 2:34 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 e. How much of the 1st payment is interest and how much is principal? 60th payment? (The bank uses penny-rounding each period) Interest portion of the 1st payment: $0.00 Principal portion of 1st payment: $0.00 Interest portion of the 60th payment: $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT A ENG 2:34 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Principal portion of 60% payment: Question 5 of 5 $0.00 Round to the nearest cent f. By how much was the balance owing reduced after making 5 years of payments? $0.00 Round to the nearest cent How much interact did they now in the first 5 voare SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 2:35 PM 2020-10-19 Il Gwork Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 g. How much interest did they pay in the first 5 years? $0.00 Round to the nearest cent h. What was the balance after the first 5 years? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGN ^ ENG Question 5 of 5 i. What percentage of the original mortgage did they pay off in the first 5 years? 0.00 % Round to two decimal places if necessary j. How much of the 24th payment is interest? $0.00 SAVE PROGRESS SUBMIT ASSIG DIE w ENG Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 k. How much interest did they pay in the first 2 years? $0.00 Round to the nearest cent w 1. How much interest did they pay in the 2nd year? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNME 4) ENG 2: 202 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 m. In 5 years, when they renew their mortgage, the rate drops to j2 = 3.19%. They make a lump-sum payment of $10,000 and amortize the balance over 20 years. Calculate the size of their monthly payment. (Recall: The bank rounds the payment up to the next dollar) $0 Round up to the next dollar SAVE PROGRESS SUBMIT ASSIGNME les A la 40) ENG 2:39 2020 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 n. What is the size of the final payment assuming the same interest rate over the 20 years? $0.00 Round to the nearest cent o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) SAVE PROGRESS SUBMIT ASSIG a 1)) ENG Question 5 of 5 Sammesso un artment in Coquitlam. Their combined gross annual Siarg 5333.Cetinstrat annual property taxes for a house in their desired menores 5520 serata fees are $150, and heating costs will be $40 per month. The song 5350 5 month for personat loans and $250 a month for car loans. They woulce to for a mortgage loan from ABC bank ABC uses the following guidelines for moregage spotications: Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage naments sroneri taves heating costs and 50% of SUBMIT ASSIGN SAVE PROGRESS a) ENG Lesson 10 &12 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 Gross Debt Service (GDS) Ratio: No more than 32% of gross household annual income should go to mortgage payments, property taxes, heating costs and 50% of strata fees. Total Debt Service (TDS) Ratio: No more than 42% of gross household annual income should go to all debt payments: house, credit cards, personal loans, and car loans. a. Based on the GDS ratio rule, what monthly mortgage payment can the Summers afford? SAVE PROGRESS SUBMIT ASSIGNMENT G 1) ENG 2:33 2020-1 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 b. Based on the TDS ratio rule, what monthly mortgage payment can the Summers afford? $0 h Round to the nearest dollar C. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the SAVE PROGRESS SUBMIT ASSIGNMENT e o A mi ENG 2:34 PI 2020-10 Question 5 of 5 c. The current Bank of Canada posted rate is 4.64% compounded semi-annually. Based on this rate (and the rules above), how large of a mortgage would ABC authorize if the mortgage was amortized over 25 years. (Assume monthly payments) $0.00 Round to the nearest cent horn anno SAVE PROGRESS SUBMIT ASSIGNIKAER A 1)) ENG 2:34 2020 Question 5 of 5 The Summers purchased an apartment for $360,000 for a condo in Coquitlam. They made a down payment of 20% (20% is the minimum down payment needed so you don't have to buy mortgage default insurance) and took out a mortgage for the balance, amortized over 25 years at j2 = 3.75% for a 5-year term. d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. SAVE PROGRESS SUBMIT ASSIGNME A ENG 2 202 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 d. Calculate their monthly payment. The bank rounds the payment up to the next dollar. Recalculate the number of payments based on this monthly payment. $0 Round up to the next dollar o payments Round up to the next payment SAVE PROGRESS SUBMIT ASSIGNMENT 1) ENG 2:34 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 e. How much of the 1st payment is interest and how much is principal? 60th payment? (The bank uses penny-rounding each period) Interest portion of the 1st payment: $0.00 Principal portion of 1st payment: $0.00 Interest portion of the 60th payment: $0.00 SAVE PROGRESS SUBMIT ASSIGNMENT A ENG 2:34 PM 2020-10-19 Close Date: Thu, Oct 22, 2020 5:00 PM Principal portion of 60% payment: Question 5 of 5 $0.00 Round to the nearest cent f. By how much was the balance owing reduced after making 5 years of payments? $0.00 Round to the nearest cent How much interact did they now in the first 5 voare SAVE PROGRESS SUBMIT ASSIGNMENT 4) ENG 2:35 PM 2020-10-19 Il Gwork Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 g. How much interest did they pay in the first 5 years? $0.00 Round to the nearest cent h. What was the balance after the first 5 years? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGN ^ ENG Question 5 of 5 i. What percentage of the original mortgage did they pay off in the first 5 years? 0.00 % Round to two decimal places if necessary j. How much of the 24th payment is interest? $0.00 SAVE PROGRESS SUBMIT ASSIG DIE w ENG Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 k. How much interest did they pay in the first 2 years? $0.00 Round to the nearest cent w 1. How much interest did they pay in the 2nd year? $0.00 Round to the nearest cent SAVE PROGRESS SUBMIT ASSIGNME 4) ENG 2: 202 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 m. In 5 years, when they renew their mortgage, the rate drops to j2 = 3.19%. They make a lump-sum payment of $10,000 and amortize the balance over 20 years. Calculate the size of their monthly payment. (Recall: The bank rounds the payment up to the next dollar) $0 Round up to the next dollar SAVE PROGRESS SUBMIT ASSIGNME les A la 40) ENG 2:39 2020 Lesson 16 &17 Homework Close Date: Thu, Oct 22, 2020 5:00 PM Question 5 of 5 n. What is the size of the final payment assuming the same interest rate over the 20 years? $0.00 Round to the nearest cent o. Over the 25 years how much interest will they pay? (assume same rate for next 20 years) SAVE PROGRESS SUBMIT ASSIG a 1)) ENG