Suppose that 6 months from now, the COVID crisis has caused real estate prices to fall 20% and you are confident that they will bounce back. You have decided to buy a condo on Four Winds Drive, a short walk from the new subway stop at Keele and Finch. You plan to live there with a friend while you finish off your BBA and then commute to downtown where you expect to work after graduation. The condo will cost $400,000 and your parents have provided you the down payment money of $100,000. And the bank is quoting 2.50% quoted rate based on a 25-year amortization, which will be compounded semi-annually in accordance with Canadian law.

Required:

1. What would be the amount of monthly payments on the mortgage?(6 marks)
2. What would be the principal outstanding after five (5) years?(5 marks)